DOCSLIB.ORG

Altegris KKR Commitments Fund

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Altegris KKR Commitments Fund FUND FACT CARD Altegris KKR Commitments Fund Altegris invites accredited investors to gain broad exposure to private equity managed by Kohlberg Kravis Roberts & Co. (“KKR”) via the Altegris KKR Commitments Fund, a continuously offered closed-end fund.1 Unique Fund Features | There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses › Broad exposure to KKR private equity › Diversification across investment types, strategies, geographies and vintages › Lower minimum investment than traditional private equity › 1099 tax reporting › No capital calls Access to Experts Kohlberg Kravis Roberts & Co. StepStone Group | SUB-ADVISER Altegris Advisors | INVESTMENT ADVISER KKR is a leading global investment firm with industry- A global private markets specialist using a highly A premier alternative investment firm employing leading investment experience, in-depth industry disciplined, research-focused approach to assess an institutional-caliber research team focused knowledge and sophisticated processes for growing primary, secondary and co-investment opportunities. exclusively on alternative investments. Founded in and improving businesses. KKR was founded in 1976 StepStone Group was founded in 2007 and oversees 2002, Altegris currently has approximately $2.44 billion and has $120 billion in AUM as of 12/31/15. $75 billion of private capital allocations as of 12/31/15. in client assets as of 12/31/15. The Altegris KKR Commitments Master Fund As the Master Fund’s sub-adviser, StepStone Group As the Master Fund’s investment adviser, Altegris intends to allocate at least 80% of its assets to private recommends primary, secondary and co-investment Advisors determines the final investment selection equity investments managed by KKR. 2 opportunities, and advises on portfolio construction. and portfolio construction. Diversification INVESTMENT TYPES STRATEGIES GEOGRAPHY VINTAGE YEARS Seeks to allocate assets Investments will Investments will be made Investments across a to primary, secondary, be diversified across in multiple geographic range of vintage years in and co-investment strategies, with a bias regions including primary and secondary opportunities towards buyout and special North America, offerings helps to situation opportunities Europe and Asia minimize cash drag often experienced with investments soley in primary offerings 1 The Fund has a master/feeder structure. The Altegris KKR Commitments Fund (the “Feeder Fund”) has the same objective and strategies as the Altegris KKR Commitments Master Fund (the “Master Fund,” collectively the “Fund”). 2 However, the Master Fund may at any time determine to allocate its assets to investments not sponsored, issued by, or otherwise linked to, KKR or its affiliates and to strategies and asset classes not representative of private equity. KKR is neither a sponsor, promoter, adviser nor affiliate of the Fund. There is no agreement or understanding between KKR and Altegris or StepStone regarding the management of the investment program of the Fund. There can be no assurance that all investment types will be available, will be consistent with the Fund’s investment objective, will satisfy the Investment Adviser’s due diligence considerations or will be selected for the Fund. Diversification does not ensure profit or protect against loss in a positive or declining market. There is no guarantee that any investment will achieve its objectives, generate profits or avoid losses. Cash drag in regards to a primary offering refers to the fact that a primary investment is typically required to initially fund only a small percentage of its total capital commitment. This initial funding may be followed by subsequent drawdowns (the timing and size of which will vary and often come with short notice) as needed to make new investments. The investor may hold cash uninvested in order to have it on hand to satisfy later drawdowns, which can result in a “drag” on performance. Co-investment is an investment in an operating company made alongside a private equity fund manager. Primary investments are investments in newly offered private equity investment funds. Secondary investments represent existing private equity fund interests acquired from third parties in a secondary market transaction. Vintage Year is the year a first drawdown of capital. TRUSTED ALTERNATIVES. INTELLIGENT INVESTING.® [1] 888.524.9441 | www.altegris.com FUND FACT CARD › ALTEGRIS KKR COMMITMENTS FUND Investment Objective The Fund seeks long-term capital appreciation. Fund Terms and Conditions Investment Minimum A $25,000 Investment Qualifications B Accredited investor eligibility as defined by Rule 501(a) of Regulation D under the Securities Act of 1933, as amended; generally, individuals with net worth of $1 million (excluding primary residence); entities with $5 million in total assets Share Repurchases Will not commence for at least two full calendar years following commencement of Fund operations; beginning in the third year, (i.e., Potential LiquidityC) the Investment Adviser will recommend to the Fund’s Board of Trustees (“Board”) that the Fund offers to repurchase Shares from Shareholders on a quarterly basis, in an amount not to exceed 5% of the Fund’s net asset value (“NAV”), subject to the discretion of the Board to make such tender offer each quarter Early Repurchase Fee Upon commencement of the Share repurchase program in the third year of Fund operations, any repurchase of Shares from a Shareholder which were held for less than one year will be subject to a 2% of NAV fee on shares repurchased Subscriptions Monthly Distributions Reinvested, with option to receive in cash at least annually Fees and Expenses Master Fund (Advisory) D Feeder Fund (Brokerage) D Management Fee 1.2% of NAV annual management fee 1.2% of NAV annual management fee F Distribution Fee N/A 0.60% of NAV annually Sales Load No load or distribution fee Sales load charge from 0% to 3.5% of the investment amount when shares purchased G Operating Expenses 0.55% of NAV cap on other expenses E 0.80% of NAV cap on other expenses H Tax Reporting 1099 Registration Securities Act of 1933 and Investment Company Act of 1940 I registered closed-end investment funds Independent Auditor Deloitte & Touche LLP Custodians SEI Private Trust Company and JP Morgan Chase Bank, N.A. Administrator Gemini Fund Services, LLC A The Minimum may be waived for certain investors. B Sub-placement agents may impose stricter definitions of eligibility. C Will utilize a line of credit to manage liquidity within Investment Company Act of 1940 (“1940 Act”) limitations on leverage. D The Feeder Fund invests substantially all of its assets into the Master Fund. The Feeder Fund is intended for brokerage accounts. The Master Fund is intended for advisory accounts, subject to asset based program fees. E 0.55% limit on operating expenses (ex. management fee, credit, trading, acquired fund and extraordinary expenses) at the Master Fund level for at least the first two years of operation. F Management fee assessed at the Master Fund level; no additional management fee at the Feeder Fund level. G Feeder Fund sales load can be up to 3.5% of the investment amount when shares are purchased. Sales load may be lower at certain sub-placement agents. H Includes the 0.55% limit on operating expenses at the Master Fund level plus the 0.25% limit on operating expenses at the Feeder Fund level for at least the first two years of operation. I The Investment Company Act of 1940 regulates the organization of investment companies that offer securities to the public, and whose principal activities are investing, reinvesting and trading in securities. The 1940 Act describes functions, activities, registration, responsibilities and restrictions placed on investment companies. There will be no direct or indirect payments from KKR to Altegris or to any third party, pursuant to any agreement or understanding, that are used to offset any expenses of the Fund. INVESTORS SHOULD CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUND. THIS AND OTHER IMPORTANT INFORMATION ABOUT THE FUND IS CONTAINED IN THE FUND’S PROSPECTUS, WHICH CAN BE OBTAINED BY CALLING ALTEGRIS ADVISORS AT (888) 524-9441. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING. RISKS ASSOCIATED WITH AN INVESTMENT IN THE FUND The discussions of the various risks associated with the Fund and the Shares are not, and are not intended to be, a complete enumeration or explanation of the risks involved in an investment in the Fund. Prospective investors should read the entire Prospectus and consult with their own advisors before deciding whether to invest in a Fund. An investment in the Fund involves a high degree of risk and may involve loss of capital, up to the entire amount of a Shareholder’s investment. Other risks include: › The Master Fund expects to invest a substantial portion Managers and strategies and effectively allocate Master › Subject to the limitations and restrictions of the Investment of its assets in Investment Funds managed by Investment Fund assets among them. The Fund is organized to provide Company Act of 1940, the Master Fund may use leverage Managers affiliated with KKR, and therefore may be less Shareholders with a multi-strategy investment program and by borrowing money for investment purposes, to satisfy diversified, and more subject to concentration risk and/ not as an indirect way to gain access to any particular KKR repurchase requests and for other temporary
Load more

Recommended publications
  • Combining Banking with Private Equity Investing*
    Unstable Equity? * Combining Banking with Private Equity Investing First draft: April 14, 2010 This draft: July 30, 2010 Lily Fang INSEAD Victoria Ivashina Harvard University and NBER Josh Lerner Harvard University and NBER Theoretical work suggests that banks can be driven by market mispricing to undertake activity in a highly cyclical manner, accelerating activity during periods when securities can be readily sold to other parties. While financial economists have largely focused on bank lending, banks are active in a variety of arenas, with proprietary trading and investing being particularly controversial. We focus on the role of banks in the private equity market. We show that bank- affiliated private equity groups accounted for a significant share of the private equity activity and the bank’s own capital. We find that banks’ share of activity increases sharply during peaks of the private equity cycles. Deals done by bank-affiliated groups are financed at significantly better terms than other deals when the parent bank is part of the lending syndicate, especially during market peaks. While bank-affiliated investments generally involve targets with better ex-ante characteristics, bank-affiliated investments have slightly worse outcomes than non-affiliated investments. Also consistent with theory, the cyclicality of banks’ engagement in private equity and favorable financing terms are negatively correlated with the amount of capital that banks commit to funding of any particular transaction. * An earlier version of this manuscript was circulated under the title “An Unfair Advantage? Combining Banking with Private Equity Investing.” We thank Anna Kovner, Anthony Saunders, Antoinette Schoar, Morten Sorensen, Per Strömberg, Greg Udell and seminar audiences at Boston University, INSEAD, Maastricht University, Tilburg University, University of Mannheim and Wharton for helpful comments.
    [Show full text]
  • Private Equity;
    MICHAEL MORTELL Senior Managing Director Digital Media; Mergers & Acquisitions; Private Equity; Restructuring; Strategy 485 Lexington Avenue, 10th Michael Mortell is a Senior Managing Director at Ankura Capital Advisors, Floor New York, NY 10017 based in New York. Mike has extensive experience advising entrepreneurs +1.212.818.1555 Main and companies on mergers, acquisitions, strategic and business planning, +1.646.291.8597 Direct restructuring, and capital raising alternatives. Over a career in investment banking and consulting, he has cultivated expertise in the digital media and [email protected] private equity industries and developed strong relationships within them. Mike has a proven record of identifying young, high-potential companies, and providing the strategical and tactical counsel that supports growth EDUCATION objectives and positions them for future success. He also has advised MBA, University or Chicago owners/shareholders of established companies on strategic growth and Booth School of Business liquidity options. In addition to his work in digital media, he has significant BS, Finance Fairfield University experience in the e-commerce, software, retail, specialty manufacturing, and business services sectors. Prior to joining Ankura, Mike was a senior advisor at GP Bullhound, a CERTIFICATIONS boutique investment bank that acquired AdMedia Partners, the M&A FINRA Series 24, 7, 79 and 63 advisory firm where he served as a managing director. He previously ran the Private Equity Financing Group of Prudential Securities and worked for Zolfo, Cooper and Company where he was a consultant to troubled companies and their creditors. Mike also co-founded and managed Grandwood Capital LLC, an investment bank and advisory firm focused on middle-market companies.
    [Show full text]
  • August Investor Presentation
    APOLLO GLOBAL MANAGEMENT, LLC (NYSE: APO) Apollo Global Management Investor Presentation August 2018 Forward Looking Statements & Other Important Disclosures This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements include, but are not limited to, discussions related to Apollo Global Management, LLC’s (together with its subsidiaries, “Apollo”,”we”,”us”,”our” and the “Company”) expectations regarding the performance of its business, liquidity and capital resources and the other non-historical statements. These forward looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. When used in this presentation, the words “believe,” “anticipate,” “estimate,” “expect,” “intend” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and variations of such words or similar expressions are intended to identify forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. These statements are subject to certain risks, uncertainties and assumptions, including risks relating to our dependence on certain key personnel, our ability to raise new private equity, credit or real asset funds, market conditions generally, our ability to manage our growth, fund performance, changes in our regulatory environment and tax status, the variability of our revenues, net income and cash flow, our use of leverage to finance our businesses and investments by funds we manage (“Apollo Funds”) and litigation risks, among others.
    [Show full text]
  • Preqin Special Report: Subscription Credit Facilities
    PREQIN June 2019 SPECIAL REPORT: SUBSCRIPTION CREDIT FACILITIES PREQIN SPECIAL REPORT; SUBSCRIPTION CREDIT FACILITIES Contents 3 CEO’s Foreword 4 Subscription Credit Facility Usage in Private Capital 7 Subscription Lines of Credit and LP-GP Alignment: ILPA’s Recommendations - ILPA 8 Are Subscription Facilities Oversubscribed? - Fitch Ratings 10 Subscription Finance Market - McGuireWoods LLP Download the Data Pack All of the data presented in this report is available to download in Excel format: www.preqin.com/SCF19 As with all our reports, we welcome any feedback you may have. To get in touch, please email us at: [email protected] 2 CEO's Foreword Subscription credit facilities: angels or demons? A legitimate and valuable tool for managing liquidity and streamlining transactions in a competitive market, or a cynical ploy for massaging IRRs? The debate continues in private equity and wider private capital circles. As is often the case, historical perspective is helpful. Private capital operates in a dynamic and competitive environment, as GPs and LPs strive to achieve superior net returns, through good times and bad. Completing deals and generating the positive returns that LPs Mark O’Hare expect has never been more challenging than it is CEO, Preqin today, given the availability of capital and the appetite for attractive assets in the market. Innovation and answers: transparent data, combined with thoughtful dynamism have long been an integral aspect of the communication and debate. private capital industry’s arsenal of tools, comprised of alignment of interest; close attention to operational Preqin’s raison d’être is to support and serve the excellence and value add; over-allocation in order to alternative assets industry with the best available data.
    [Show full text]
  • LIFE at KKR We Are Investors
    LIFE AT KKR We are investors. But we're more than that. IT'S IN OUR DNA We're collaborative team players who are curious communities. We often measure success over about the world around us. We're passionate about years, not quarters. We value integrity in all that we always learning more and pushing to be better. do, whether it's presenting numbers accurately or Here, we're never finished growing or discovering being open and honest with a portfolio company new ideas. executive. People want to do business with those they like and trust. It's a mantra instilled in all of us People want to do business from the top down. with those they like and trust As a firm we manage investments across multiple asset classes and as individuals we are encouraged to think creatively to solve problems, explore opportunities, take on new responsibilities and challenges, put our clients first and contribute to our LIFE AT KKR | 2 We are investors. But we're more than that. Culture & Work Environment For over 40 years, our At KKR, you'll find a team of curious, driven, dedicated and intelligent professionals who enjoy working together. We all work collaborative approach hard to create a friendly environment that encourages asking continues to drive our culture questions and reaching out to others. Teamwork Entrepreneurial Spirit Integrity No matter where you sit in the Some of our best ideas come from It's at the heart of everything we do organization, you have the full giving people the time to explore, from our internal interactions to resources, network, skills and research and have conversations.
    [Show full text]
  • Co-Investment Overview
    NB Private Equity Partners: Co-investment Overview JUNE 2019 NB Private Equity Partners (“NBPE”) Key Highlights Investment Type by Fair Value1 Equity Listing Date: 2007 Co-investments 84% Market Capitalisation (3/6/19): £510.7m Net Asset Value (NAV)1: $878.2 NAV per Share1: $18.57 Funds Income 4% Investments 12% 1 Based on 30 April 2019 re-stated Net Asset Value. NB PRIVATE EQUITY PARTNERS CO-INVESTMENT OVERVIEW 2 NBPE’s Manager: Neuberger Berman Neuberger Berman manages over $70 billion in Private Equity commitments Equity Key Highlights Co-investments Credit 30 years as a private equity investor LP in over 530 active private equity funds Expertise across fund investments, direct investments and income investments Over 200 dedicated private equity investment Funds Specialty professionals with extensive networks Strategies Leading, Global Private Equity Platform Note: Represents aggregate committed capital since inception as of April 2019, including commitments in the process of documentation. NB PRIVATE EQUITY PARTNERS CO-INVESTMENT OVERVIEW 3 Private Equity & Co-investments Overview Private Equity Co-investments Co-investments provide direct private equity exposure at the company level and often possess the advantage of no associated fees or carry. Such investments require extensive due diligence and industry expertise for proper evaluation Equity Syndication (can be pre or post investment closing) Financial Sponsor Investor Direct Investment Co-investment Portfolio Company Source: Neuberger Berman. NB PRIVATE EQUITY PARTNERS CO-INVESTMENT OVERVIEW 5 The Need for Co-Investment Capital Co-investors are used in a variety of situations and offer clear advantages GENERAL PARTNERS SEEK CO-INVESTORS FOR A VARIETY OF PURPOSES: Provide equity to complete transactions Manage portfolio exposure Extend LP relationships Familiarise investors with GP investment process Provide independent valuation for mid-life situations Source: Neuberger Berman.
    [Show full text]
  • Walker Report
    WALKER REPORT NOVEMBER 2018 Our Support of the Walker Report Over the past several years, Kohlberg Kravis Roberts & Co. L.P. Overview of KKR and our private equity business (together with its affiliates, “KKR,” “we” or “us”) has been KKR is a leading global investment firm that manages multiple working to increase the transparency of our investment activities alternative asset classes, including private equity, energy, and processes, both through formal compliance with guidelines infrastructure, real estate and credit, with strategic partners recommending increased levels of disclosure as well as through that manage hedge funds. KKR aims to generate attractive voluntary initiatives with our clients, partners, portfolio investment returns for its fund investors by following a patient companies and the public at large. and disciplined investment approach, employing world-class In November 2007, a working group formed by The British people, and driving growth and value creation with KKR portfolio Private Equity and Venture Capital Association (“BVCA”) and companies. KKR invests its own capital alongside the capital it led by Sir David Walker issued the Guidelines for Disclosure manages for fund investors and provides financing solutions and Transparency in Private Equity. That publication, which is and investment opportunities through its capital markets also known as the “Walker Report,” makes specific business. References to KKR’s investments may include the recommendations for improving the level of public disclosure activities of its sponsored funds. For additional information by private equity firms operating in the United Kingdom. about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
    [Show full text]
  • Private Equity Buyouts in Healthcare: Who Wins, Who Loses? Eileen Appelbaum and Rosemary Batt Working Paper No
    Private Equity Buyouts in Healthcare: Who Wins, Who Loses? Eileen Appelbaum* and Rosemary Batt† Working Paper No. 118 March 15, 2020 ABSTRACT Private equity firms have become major players in the healthcare industry. How has this happened and what are the results? What is private equity’s ‘value proposition’ to the industry and to the American people -- at a time when healthcare is under constant pressure to cut costs and prices? How can PE firms use their classic leveraged buyout model to ‘save healthcare’ while delivering ‘outsized returns’ to investors? In this paper, we bring together a wide range of sources and empirical evidence to answer these questions. Given the complexity of the sector, we focus on four segments where private equity firms have been particularly active: hospitals, outpatient care (urgent care and ambulatory surgery centers), physician staffing and emergency * Co-Director and Senior Economist, Center for Economic and Policy Research. [email protected] † Alice H. Cook Professor of Women and Work, HR Studies and Intl. & Comparative Labor ILR School, Cornell University. [email protected]. We thank Andrea Beaty, Aimee La France, and Kellie Franzblau for able research assistance. room services (surprise medical billing), and revenue cycle management (medical debt collecting). In each of these segments, private equity has taken the lead in consolidating small providers, loading them with debt, and rolling them up into large powerhouses with substantial market power before exiting with handsome returns. https://doi.org/10.36687/inetwp118 JEL Codes: I11 G23 G34 Keywords: Private Equity, Leveraged Buyouts, health care industry, financial engineering, surprise medical billing revenue cycle management, urgent care, ambulatory care.
    [Show full text]
  • Unpacking Private Equity Characteristics and Implications by Asset Class
    Unpacking Private Equity Characteristics and Implications by Asset Class www.mccombiegroup.com | +1 (786) 664-8340 Unpacking Private Equity: Characteristics & implications by asset class The term private equity is often treated as a catchall, used interchangeably to describe a broad variety of investments. Such loose use of the phrase fails to capture the range of nuanced business ownership strategies it refers to and risks branding an entire asset class with characteristics and implications that are typically relevant to only a particular sub-category. Recently, this has especially been the case given the outsized global attention placed on the leveraged buyout deals of Bain Capital, a private equity firm founded by Republican U.S. presidential candidate Mitt Romney. In this context, popular discourse has inappropriately attached the label of private equity to a general practice of debt-fueled corporate takeovers that disproportionately focus on cost cutting. In reality, however, private equity refers to an array of investment strategies each with a unique risk-return profile and differing core skillsets for success. This article is intended to help family office executives better understand the nuances of the various sub-categories of private equity. It seeks to draw high-level distinctions, serving as a practical guide for investors entering the private equity arena, be it directly or through a more curated fund structure. Ultimately by understanding the characteristics and implications of each asset class, the reader should be equipped to make an educated choice regarding the most relevant and appropriate strategy for their unique profile. From a technical perspective, private equity is nothing more than making investments into illiquid non-publicly traded companies— i.e.
    [Show full text]
  • Private Equity Primer
    MEKETA INVESTMENT GROUP PRIVATE EQUITY PRIMER OVERVIEW This primer describes the asset class commonly known as Private Equity. It attempts to answer the types of questions Trustees would be likely to ask when considering an investment in this area. Historically, private equity investments have often been grouped in a larger category of investments called alternative investments. Alternative investments were defined to be any investments other than publicly traded stocks and bonds. In addition to private equity investments, alternatives often included real estate, hedge funds, portfolio insurance schemes, trading and arbitrage programs, long/short portfolios, and various derivative-based programs. This primer is limited to private equity investments, which Meketa Investment Group defines to be investments in companies that are privately owned. Further, this primer only describes the characteristics of the asset class itself. It does not suggest a target allocation to the asset class, nor does it specify how to implement an investment program in private equities. These issues are client specific and must be addressed by the decision-makers in each group. WHAT IS PRIVATE EQUITY? Private equity investments are simply investments in privately held companies. Private equity investments are generally structured in the form of partnerships that usually consist of ten to twenty equity investments in individual companies. Like investments in publicly traded common stocks, investments in private equity funds provide long-term investors with stakes in generative assets (i.e., equity positions). However, unlike publicly traded stocks, private equity funds are not priced daily by a market. Thus, the apparent price volatility is lower and the interim return correlation to public equities is subdued.
    [Show full text]
  • Are Leveraged Buyouts a Form of Governance Arbitrage? Dale A
    Brooklyn Journal of Corporate, Financial & Commercial Law Volume 3 | Issue 1 Article 3 2008 Are Leveraged Buyouts a Form of Governance Arbitrage? Dale A. Oesterle Follow this and additional works at: https://brooklynworks.brooklaw.edu/bjcfcl Recommended Citation Dale A. Oesterle, Are Leveraged Buyouts a Form of Governance Arbitrage?, 3 Brook. J. Corp. Fin. & Com. L. (2008). Available at: https://brooklynworks.brooklaw.edu/bjcfcl/vol3/iss1/3 This Article is brought to you for free and open access by the Law Journals at BrooklynWorks. It has been accepted for inclusion in Brooklyn Journal of Corporate, Financial & Commercial Law by an authorized editor of BrooklynWorks. ARE LEVERAGED BUYOUTS A FORM OF GOVERNANCE ARBITRAGE? Dale A. Oesterle* I. INTRODUCTION From the passage of the Sarbanes-Oxley Act of 2002 (SOX) until the recent subprime financial crisis, the nation witnessed a remarkable growth in “going-private” acquisitions.1 As a percentage of total acquisitions, the purchase of publicly-held companies by privately-held companies jumped approximately twenty points.2 Scholars, with some notable exceptions,3 point to the increased compliance costs of SOX as a significant cause of the 4 change. * Professor and J. Gilbert Reese Chair in Contract Law, The Ohio State University Moritz College of Law. 1. Christian Leuz, Alexander J. Triantis & Tracy Y. Wang, Why Do Firms Go Dark? Causes and Economic Consequences of Voluntary SEC Deregistrations 4 (European Corporate Governance Institute, Finance Working Paper No. 155/2007, 2004), available at http://ssrn.com/abstract=592421 (documenting a spike in going private that is largely attributable to the Sarbanes-Oxley Act).
    [Show full text]
  • How Private Equity Is Refining Exit Strategies for Stronger Valuations
    How private equity is refining exit strategies for stronger valuations 2021 Global Private Equity Divestment Study ey.com/divest/PE Key findings PE exit activity is returning with vigor after the dramatic, pandemic-induced capital markets slowdown in the first half of 2020. Factoring ESG into exits 72% 57% of PE executives say they expect to say social impact policy, capture an ESG premium in businesses including diversity and equality they are considering exiting. commitments, is a critical area of ESG focus in their exits. Driving value through digitalization 52% 51% say digitalization of the business was of PE firms regard artificial important to developing their value intelligence as a critical value lever story and divestment thesis in their for portfolio companies over the last major exit. next 18 to 24 months. Growing focus on tax 52% 65% say adjusting tax planning and transfer pricing of PE executives globally expect associated with changes to portfolio company changes in tax policy to impact the supply chains has the largest impact on timing of their exits. structuring of dispositions. Working capital improvements on the agenda 58% 31% report they experienced a visibility gap say working capital and in portfolio companies’ access to capital operating cash improvements as a result of the pandemic. created the most value in their exits over the last 12 months. Improving value by refining exit strategies 40% 63% say a lack of fully developed diligence say they are opportunistic about materials caused value to erode in determining the right time to sell. their last exit. 2 | Global Private Equity Divestment Study 2021 How private equity is refining exit strategies for stronger valuations Market outlook PE exit activity is returning with vigor after the dramatic, pandemic- Q Where do you expect your exits to go induced capital markets slowdown in the first half of 2020.
    [Show full text]