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Growth Equity: The Child Prodigy of Private Equity and Venture Capital, or an Artifact of Easy Money?

Brian DeChesare

Over the past few decades, growth equity (GE) has gone from an afterthought to a major asset class for huge investment firms. Some argue that GE offers the best of both worlds: the opportunity to fund innovation and growth – as in venture capital – plus the ability to limit downside risk and invest in proven companies – as in private equity.

Equity 90
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The Front Office, Middle Office, and Back Office: How Banks Organize Their Dungeons

Brian DeChesare

Yes, if you’re working at a large bank, it’s generally best to be in a “front office” (client-facing) role. First, note that these terms apply only to investment banks and related finance firms (private equity firms, hedge funds, etc.).

Banking 90
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Discount Rate—Explanation, Definition and Examples

Valutico

For central banks like the Federal Reserve, it helps control the economy. They set this rate to affect how much money moves through banks and influences short-term interest rates. The discount rate effectively encapsulates the risk associated with an investment; riskier investments attract a higher discount rate.

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Convertible Arbitrage Hedge Funds: The Perfect Combination of Investment Banking and Sales & Trading?

Brian DeChesare

Traditionally, if someone asked the “ sales & trading vs. investment banking ” question, the response was easy: “Do banking unless you really, really like trading and could not imagine doing anything else.”. Convertibles do not create immediate dilution , unlike a traditional IPO or follow-on equity offering.

Banking 64
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Review the concept of WACC

Andrew Stolz

A firm uses a mix of equity and debt to minimize the cost of capital. In general, the cost of debt is lower than the cost of equity due to the tax advantage of debt. A firm borrows from banks or bondholders and it has to pay the interest. The popular method to find the cost of equity is the Capital Asset Pricing Model (CAPM).

Beta 52
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Wachtell Lipton Discusses Addressing Market Volatility and Risk in M&A Agreements

Reynolds Holding

Significant volatility continues to disrupt the equity markets, with the major stock indexes swinging multiple percentage points often on a daily basis. We outline below certain transaction structures that can be deployed to shift or address certain of these risks to account for the greater volatility in the current market environment.

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Skadden Discusses the Impact of Banking System Turmoil

Reynolds Holding

The runs on Silicon Valley Bank (SVB) and Signature Bank in March 2023 created a “very high” risk of contagion in the U.S. banking system, according to Treasury Department officials. banks and have kept this issue front of mind. banking landscape in a number of ways. banking industry.

Banking 40