Corporate Racial Equity Tracker

Harvard Corporate Governance

Posted by Kavya Vaghul and Ashley Marchand Orme, JUST Capital, on Monday, June 20, 2022 Editor's Note: Kavya Vaghul is Senior Director of Research and Ashley Marchand Orme is Director of Corporate Equity at JUST Capital. Pay Equity.

Equity 268

IPO Readiness: IPO Equity Awards

Harvard Corporate Governance

This article focuses on understanding practices related to equity awards made at or around IPO. Granting IPO awards can be beneficial to the company, equity recipients, and the new broader shareholder base.

Equity 142
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The Market for CEOs: Evidence from Private Equity

Harvard Corporate Governance

A wide range of research examines the market for CEOs and executive mobility in public companies while largely ignoring the market for CEOs in private equity funded companies. companies (enterprise value greater than $1 billion) purchased by private equity firms between 2010 and 2016. We find that 71% of those companies hired new CEOs under private equity ownership. times on its equity investment. Posted by Paul A. Gompers (Harvard Business School), Steven N.

Equity 201

The Corporate Calendar and the Timing of Share Repurchases and Equity Compensation

Harvard Corporate Governance

Wang (discussed on the Forum here ); and Share Repurchases, Equity Issuances, and the Optimal Design of Executive Pay by Jesse M. 2013 ) and specifically the CEO ( Moore, 2020 ) are more likely to sell equity when firms buy back stock.

Equity 216

Myths vs. Facts: What Do Private Equity Firms Do?

Viking Mergers

If you have ever looked into selling a business, you may have learned that there are many types of buyers and deal structures, from employee buyouts, strategic acquisitions, to private equity firms. We have noticed many misconceptions about a particular kind of buyer: the private equity firm.

Benefits of Selling to a Private Equity Group

Viking Mergers

To some, the topic of selling to private equity groups does not stir positive feelings. What is a Private Equity Group? Private equity is often lumped into a single category of leveraged buyouts , which has played a large role in the negative reputation.

Equity 130

Why Growth is Important to Private Equity

Business Sales M&A

One of the main premises behind a Private Equity Group (PEG) acquisition is to use debt to amplify the returns on the equity portion of it. Articles Business Valuations Exit Planning Mergers and Acquisitions Posts business valuations EBITDA multiple private equity valuation multiples

Equity 130

Tracking diversity, equity, and inclusion data in private markets

McKinsey Public & Social Sector Insights

Institutional investors and private equity firms can implement some basic but crucial best practices to measure progress on diversity, equity, and inclusion. Insights on Private Equity & Principal Investors Institutional investors Financial Services Diversity

Liability for Non-Disclosure in Equity Financing

Harvard Corporate Governance

Notably, the damage payment received by the outside investors is offset in part by the reduced value of their equity stake. Posted by Albert H. Choi (University of Michigan) and Kathryn E. Spier (Harvard Law School), on Friday, April 22, 2022 Editor's Note: Albert H. Choi is Paul G. Kauper Professor of Law at the University of Michigan and Kathryn E. Spier is Domenico De Sole Professor of Law at Harvard Law School. This post is based on their recent paper.

Private Equity Exit Opportunities: How to Check Out of Hotel California

Brian DeChesare

Your first thoughts reading this article might be, “Wait a minute, why are ‘private equity exit opportunities’ a topic? But despite the hype, people do leave private equity all the time, whether it’s voluntary or forced. Why Leave Private Equity? Private Equity - Careers

The state of diversity in US private equity

McKinsey

Taking a closer look at the data reveals private equity’s progress, remaining challenges, and the road ahead on diversity. Insights on Private Equity & Principal Investors Private Equity

Surge in Private Equity Deal Activity 2021

Benchmark Report

Private equity transactions on a global scale returned to form in 2021 following the challenges posed by the pandemic, with private equity firms deploying record amounts of dry powder held as they looked to invest cash accumulated during the pandemic.

The Law and Economics of Equity Swap Disclosure

Harvard Corporate Governance

This post is based on his recent paper, The Law and Economics of Equity Swap Disclosure , which is in turn based on a comment letter he filed with the Securities and Exchange Commission in response to a request for comments on its proposal regarding the disclosure of equity swaps. In my paper The Law and Economics of Equity Swap Disclosure , and in a comment letter I filed with the Commission, I provide a critical assessment of this proposal. Posted by Lucian A.

Equity 153

Governance and the Decoupling of Debt and Equity: The SEC Moves

Harvard Corporate Governance

Decoupling”—the unbundling of the rights and obligations of equity and debt through derivatives and other means—has posed unique challenges for corporate and debt governance. Posted by Henry T. Hu (University of Texas), on Tuesday, November 8, 2022 Editor's Note: Henry T. Hu is the Allan Shivers Chair in the Law of Banking and Finance at the University of Texas Law School.

Equity 161

Chief performance officers can be a secret ingredient for private equity success. Here’s why

McKinsey Public & Social Sector Insights

Operating groups gain an edge when they add a CPO, but these roles are still rare in private equity firms. Insights on Private Equity & Principal Investors Private Equity Corporate FinanceThat should change.

SocGen and AllianceBernstein agree equities merger

Financial Times M&A

French bank will have option of buying joint venture outright five years after it launches

Forging your own path: Sandra Horbach on building a career in private equity

McKinsey

The cohead of US buyout and growth at Carlyle shares thoughts on the state of private equity, the path forward on diversity and inclusion, and advice on building a successful career in the industry. Insights on Private Equity & Principal Investors Private Equity Women & Leadership

2022 Proxy Season Review: Say-on-Pay and Equity Compensation Plan Voting

Harvard Corporate Governance

ISS Say-on-Pay and Equity Compensation Plan Voting. Posted by Jeannette Bander, Heather Coleman, and Marc Treviño, Sullivan & Cromwell LLP, on Monday, September 12, 2022 Editor's Note: Jeannette Bander , Heather Coleman , and Marc Treviño are partners at Sullivan & Cromwell LLP. This post is based on a Sullivan & Cromwell memorandum by Ms. Bander, Ms. Coleman, Mr. Treviño, June Hu , Brittney Kidwell, and Rebecca Rabinowitz. Introduction.

Equity 193

Why private equity sees life and annuities as an enticing form of permanent capital

McKinsey

Insights on Private Equity & Principal Investors Private Equity Life insurancePrivate acquisitions of in-force books are growing. Here’s a playbook for those considering market entry, those already in, and insurers wondering how to respond.

Equity 100

Private Equity Wants Your Family Business

Auto Dealer Valuation Insights

For many family business leaders we talk with, “private equity” is a four-letter word. However, a September Wall Street Journal article highlights a recent thaw in the historically icy relationship between family businesses and private equity investors.

Diversity Leaders Open New Doors for Equity Investors

Harvard Corporate Governance

Posted by Gayle Baldwin and Vivian Lubrano, AllianceBernstein, on Friday, July 22, 2022 Editor's Note: Gayle Baldwin is a Senior Vice President and Senior Research Analyst, and Vivian Lubrano is a Portfolio Manager for Portfolios with Purpose at AllianceBernstein.

Equity 159

How to Sell Business Equity

Sun Acquisitions

If it makes financial sense and you understand the dilution aspect of selling equity and the potential interference from investors, then yes, go ahead. In this post, we’re going to address what these are, some of the challenges to expect, how to sell the equity, and who to sell it to.

Do Equity Markets Care About Income Inequality? Evidence from Pay Ratio Disclosure

Harvard Corporate Governance

Understanding equity markets’ assessment of income inequality is important because equity markets allocate capital and send valuation signals to firms, informing and possibly shaping corporate policies that contribute to or mitigate income inequality. Posted by Stephan Siegel (University of Washington), on Wednesday, June 15, 2022 Editor's Note: Stephan Siegel is Professor of Finance and Business Economics at the University of Washington.

Equity 183

Fannie’s ‘Equity’ Plan: The Drinking Game

Appraisers Blog

What makes equity so invidious as a governing tenet is that it involves not just helping people of one racial or cultural group but it has the effect of knocking struggling members of disfavored groups out of the game.

Debevoise Discusses FTC Focus on Private Equity

Reynolds Holding

On June 13, 2022, the Federal Trade Commission’s (“FTC”) five commissioners aired their ideological differences over the regulation of private equity-backed consolidation and the tools used to police such deals via a consent agreement settling the FTC’s challenge to a $1.1 The Commission’s statements and relief granted in the consent agreement could have far-reaching implications for future private equity acquisitions, particularly roll-up strategies. Focus on Private Equity.

Cannabis Licensing: Will New York's Social Equity Model Set The Trend Or Get Tripped Up?

Benzinga

Several states that have recently or soon intend to roll out their adult-use cannabis marketplaces hope progressive equity licensing measures pay off, unlike the states before them. Part of the anticipated booming economy will be equity license holders.

Health equity: Activating meaningful change

McKinsey

The COVID-19 pandemic has highlighted longstanding health and social inequities in healthcare and raised the urgent question of how health equity can be achieved.

What Is Cost of Equity?

Andrew Stolz

Definition of the Cost of Equity. The theoretical return the firm pays its equity investors (shareholders) is known as the cost of equity. In other words, the cost of equity is the rate of returns a firm pays to its shareholders. What Impacts the Cost of Equity?

What Is Equity Risk Premium?

Andrew Stolz

Definition of Equity Risk Premium. What Impacts the Equity Risk Premium? How Do You Calculate Equity Risk Premium? Equity risk premium can be calculated by subtracting the expected risk-free rate from the market expected return. Why is the Equity Risk Premium Important?

Memo to public company CFOs: Private equity can show you how it’s done

McKinsey Public & Social Sector Insights

Strategy & Corporate Finance Insights Private Equity StrategyCFOs of public companies can draw enormous insight from PE’s focused, proactive approach to value creation—but they have to take the initiative themselves. Here are five lessons to get started.

Antitrust: Heads Up, Private Equity!

John Jenkins

This Wilson Sonsini memo highlights recent statements by senior DOJ & FTC officials that suggest that antitrust regulators are increasing their scrutiny of the private equity industry. In particular, director interlocks, roll-ups and issues surrounding private equity funds as divestiture buyers are getting a lot of attention.

What Is Assets To Equity Ratio?

Andrew Stolz

Definition of Assets to Equity Ratio. The assets to equity ratio allow you to understand to what extent a business is funded by equity or debt. The ratio measures the total assets in relation to total equity. What is the Formula for Assets to Equity Ratio?

Angeles Equity Partners Portfolio Company R?BEX Acquires Vantage Corporation

Business Wire M&A

BEX, an Angeles Equity Partners portfolio company and provider of robotics and industrial automation solutions, has acquired Vantage Corp PERRYSBURG, Ohio--(BUSINESS WIRE)--R?BEX,

Private Equity Is the New Financial Supermarket

NYT M&A

Private-equity firms were once niche players serving big clients. Private Equity Banking and Financial Institutions Regulation and Deregulation of Industry Mergers, Acquisitions and Divestitures Blackstone Group, The Apollo Global Management Carlyle Group LP TPG Capital KKR & Co LP

PE Firms Poised for Diversity Drive

Harvard Corporate Governance

Diversity has become a key focus for every industry in recent years, and private equity, like many other parts of the financial sector, still has significant progress to make in terms of diversity and inclusion. Private equity lags behind others in the financial services industry across a range of diversity metrics—according to a report published by EY in December 2021, just 10% of private equity roles are held by women.

Equity 179

Dispelling Myths about Private Equity Buyers

Benchmark Report

Private Equity buyers will come in and get rid of all of my employees, borrow an absurd amount of money to finance the acquisition, thereby straining my company’s balance sheet and income statement, and then, light a match Goodfellas-style when they are done extracting value from it.

How to Start a Private Equity Firm – and Why You Probably Shouldn’t

Brian DeChesare

If you search for “how to start a private equity firm” online, you’ll find results that range from useless to tangentially useful to occasional nuggets of real wisdom. Starting a private equity firm is a bad decision for ~95% of people who work in the finance industry.

Private equity’s biggest problem

Financial Times M&A

The industry is not a pyramid scheme but it might be operating in an alternate reality

Carve-Outs’ Popularity Soars as Businesses Pursue Growth

Harvard Corporate Governance

ESG International Corporate Governance & Regulation Mergers & Acquisitions Practitioner Publications Private Equity Carve-outs Climate change International governance Japan Mergers & acquisitions Private equity UKPosted by Gregory Pryor and Germaine Gurr, White & Case LLP, on Tuesday, September 6, 2022 Editor's Note: Gregory Pryor and Germaine Gurr are partners at White & Case LLP. This post is based on a White & Case memorandum by Mr. Pryor, Ms.

Equity 201

What Is Return On Equity?

Andrew Stolz

Definition of Return on Equity (ROE). The ROE divides the net income of a company with the shareholder’s equity. The shareholder’s equity is the company’s assets minus the company’s debt. Net Income ÷ Shareholder’s Equity.

Private Equity Headhunters: Pathway Providers or Unethical Gatekeepers?

Brian DeChesare

You’ll almost always have to deal with private equity headhunters if you want to win offers at mid-sized-to-large private equity firm s. Purpose: Headhunters function as outsourced recruiting and HR for private equity firms. The Top Private Equity Headhunters.

2022 Trends in Private Equity

Class VI Partner

2021 Private Equity M&A Recap 2022 Deal Activity, Lender Environment and Outlook Conclusion. 2021 private equity deal activity was record-breaking by nearly every metric. The post 2022 Trends in Private Equity appeared first on Class VI Partners KEY ARTICLE TAKEAWAYS.

Advancing diversity, equity, and inclusion

McKinsey

During the COVID-19 pandemic, women have had bigger workloads—and have burned out in greater numbers. Government leaders can use proven approaches to address these issues and build better workplaces. Public & Social Sector Insights Public & Social Sector

Equity 101