Private equity explained

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  • čas přidán 12. 01. 2012
  • Private equity funds are groups of investors that flip companies for a profit. It's the technique they use that makes them special, as Paddy Hirsch explains. #MarketplaceAPM #PrivateEquity #Investing
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Komentáře • 364

  • @chriswalter92
    @chriswalter92 Před 21 dnem +195

    Private equity sounds like a mechanism that extracts the most amount of value from a business, and transfers that wealth to the few general partners.
    Everyone loses - the business, the employees, the local consumers, the tax payers.... except for the general partners

    • @tahirisaid2693
      @tahirisaid2693 Před 21 dnem

      The people you’re claiming don’t benefit wouldn’t have benefited with or without the private equity buyout. The business was failing before private equity came in, they just more efficiently manage the end of the companies life. Most likely allowing most companies to work there longer than they would have been able to do before.

    • @lookoutforchris
      @lookoutforchris Před 18 dny

      @@tahirisaid2693😂😂😂😂😂😂😂😂

    • @smokingONsumDRO
      @smokingONsumDRO Před 11 dny

      Thats litteraly the point of any and every buisinness under capitalism tho

    • @adastraperlana
      @adastraperlana Před 8 dny

      ​@@tahirisaid2693bullshit.

  • @Deen_WestYorkshire
    @Deen_WestYorkshire Před 5 měsíci +26

    My learning style is aligned with your delivery. Really enjoyed this.

  • @ericthered9655
    @ericthered9655 Před 3 lety +13

    Sounds like the people who would benefit most would be monopolists who want to get rid of competition without triggering an antitrust action.

  • @Ronniek-lo8pw
    @Ronniek-lo8pw Před 3 lety +418

    Saw a lot of luxury car owners say they do this.

  • @user-qp2qz8de5h
    @user-qp2qz8de5h Před 3 lety +37

    The most direct and easiest way to understand about PE!

  • @Tubeytime
    @Tubeytime Před 9 měsíci +14

    Beautifully explained, the power of art shines forth once again

  • @Exatic
    @Exatic Před 3 lety +261

    Been seeing those tik toks about people doing this for a living..... let me try and learn something real quick

  • @jaydenjanshego6978
    @jaydenjanshego6978 Před 3 lety +174

    I kno can't be the only one here from TikTok

  • @muzammilbabar766
    @muzammilbabar766 Před 2 lety +5

    De Niro teaching us is a blessing.

  • @Guss425
    @Guss425 Před 2 lety +9

    This is really well explained

  • @abhinavitsmebellamy
    @abhinavitsmebellamy Před 4 lety +10

    Thank you, Sensei!!

  • @hardstylelife5749
    @hardstylelife5749 Před měsícem

    That was really easy to understand and assimilate, thank you :)

  • @coinstacks2455
    @coinstacks2455 Před 7 lety +3

    Great job thanks for the info.

  • @EnricoSalilo
    @EnricoSalilo Před 2 lety

    Very good and clear explanation.. Thank youuu..

  • @vinniecooper1983
    @vinniecooper1983 Před 4 lety +1

    Excellent presentation!

  • @suhailakhoonable
    @suhailakhoonable Před 3 lety +2

    Excellent explanation

  • @vikramsd186
    @vikramsd186 Před 9 lety +1

    Absolutely Cool Paddy ...... Thanks a Lot :-)

  • @malynaph7683
    @malynaph7683 Před 12 lety +71

    I am French and was looking for a deep explanation of private equity in French language (as I don't really master English). Watched your video and found out that I understood better your explanation in English than 100 French websites I read. THANK YOU SO MUCH !!

    • @dissmr
      @dissmr Před 3 lety +3

      baby girl.. your English is sweet. I dont speak French.. but I DO kiss that way. ))

    • @sammy2551
      @sammy2551 Před 3 lety +2

      If you are french, I am Swedish

    • @TheMoumou120
      @TheMoumou120 Před rokem

      ​@@dissmr 🤌

    • @dvoiceotruth
      @dvoiceotruth Před měsícem

      bonjour

  • @ntulisbusiso6409
    @ntulisbusiso6409 Před 3 lety

    You the best , this has just explained my curiosity on what is this PE .

  • @randallorozco5680
    @randallorozco5680 Před 3 lety +16

    TIK TOK BROUGHT ME HERE! Man I've been wasting my f*cking life studying some other bullsh*t. I wish I knew this 10 years ago.

  • @ApartmentTrusteescom
    @ApartmentTrusteescom Před 10 lety +2

    Nice explanation.

  • @ecomstories
    @ecomstories Před 9 měsíci

    Nice Video! Thanks for explaining!

  • @oluwapoloorejayeoba7949

    I couldn’t understand this until I watched this video. Good job👍🏼

  • @surrealentertainment9558

    Thanks my guy.......very well explained

  • @thabo1504
    @thabo1504 Před 3 lety

    Brilliant explanation!!!

  • @vicahmed221
    @vicahmed221 Před rokem +34

    No doubts , A good way of growing and saving your money is through investing . You don't need to have much before you can invest. "That little money you have now can make you millions if you invest it wisely". I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made.

    • @Alexedmartin.
      @Alexedmartin. Před rokem

      Nice one Vic.Any investment tip?. I would love to know how you made it this far

    • @Alexedmartin.
      @Alexedmartin. Před rokem

      @Vic Vic That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?

    • @vicahmed221
      @vicahmed221 Před rokem

      @@Alexedmartin. She is easy to find , make a quick research of her on the internet with her name Regina Louise Collaro and leave her a message .She works with anyone independent of their location.

    • @rosekaplan219
      @rosekaplan219 Před rokem

      @@vicahmed221 You are right, I am one of many who has benefited from investing with Regina Louise Collaro. 2020 is an unforgettable year in my life, back then I lost my job due to covid and had no reason to live. Regina made a good life possible for me through passive income and I owe her my life. To be honest, I feel like she is an angel of who was sent to help those who are suffering financially

    • @stevenvalvano9712
      @stevenvalvano9712 Před 11 měsíci

      I am 15 years old what would you tell a young kid like me to do so I can retire before 30. Thanks

  • @Jusonomous
    @Jusonomous Před 7 měsíci

    The “leaves all of us needing a drink” at the end was funny asf

  • @timesmotivation7802
    @timesmotivation7802 Před 3 lety

    Thank you! Great information!

  • @andrewashmore8000
    @andrewashmore8000 Před rokem

    Brilliant explanation. !!

  • @chancenchoices9983
    @chancenchoices9983 Před 3 lety

    Thank you so much for the video. I want to learn more

  • @dees900
    @dees900 Před 2 lety

    fantastic video...thank you very much

  • @wasanfan
    @wasanfan Před 11 lety

    thank you so much for your v valuable explanation !! Where were u before !!

  • @seymourelykeley
    @seymourelykeley Před 4 lety

    very good job of explaining.

  • @SimonChengHK
    @SimonChengHK Před 11 lety

    Thank for expand , working in K. K. R. Capital before still not really sure they spend lot of $€£ , however silver lake and T.P.G is the most competitive P.E. firm

  • @mrityunjoynath7673
    @mrityunjoynath7673 Před rokem

    Great concept, great video.

  • @pokechef7
    @pokechef7 Před 4 lety

    well done. thank you for this

  • @luisfernandes2522
    @luisfernandes2522 Před 2 lety +2

    I never get tired of the punch line at the end !

  • @vferraz88
    @vferraz88 Před 3 lety

    best teacher ever

  • @onetamer
    @onetamer Před 5 lety +1

    Super clear 👍

  • @guildsfordbrothers6095
    @guildsfordbrothers6095 Před 11 lety +3

    While many private equity fund managers are ethical, Steve Feinberg's private equity fund is what caused school teacher retirement money to bankroll U.S. black rifle manufacturers. It was his company that made the Newtown gun.

  • @williejr71williams22
    @williejr71williams22 Před 6 měsíci

    Excellent job 👏

  • @andthenwhat3506
    @andthenwhat3506 Před 3 lety +2

    Saw video of guy asking people who owned sports what they do for a living and this was one of their answers. So here i am on my way to owning a sports car. lol

  • @superman83080
    @superman83080 Před 2 lety

    Greatly explained

  • @peterponcedeleon3368
    @peterponcedeleon3368 Před 4 lety +2

    Excellent

  • @m_timil9352
    @m_timil9352 Před 3 lety

    best teacher on yt

  • @jonathansridhar
    @jonathansridhar Před 3 lety +1

    Very quick and easy explanation thanks!

  • @JeremyHaynesTraining
    @JeremyHaynesTraining Před 2 lety

    Solid video - thank you

  • @maze396
    @maze396 Před 5 lety

    Bruh this explanation was great!

  • @billnolan5375
    @billnolan5375 Před 2 lety +34

    Not all income investments are created
    equally. I've allocated my capital in a safe and sustainable way but still leave room for excitement for individual stocks, cryptos and new exciting opportunities!

    • @rahultoggi4672
      @rahultoggi4672 Před 2 lety +4

      I'm working towards an early retirement, it's
      possible but tough, it definitely requires discipline and big sacrifices. Putting in the work in boosting my earning capacity. I'm glad I got into stocks and recently joined the NFT train.

    • @joerobert1801
      @joerobert1801 Před 2 lety +3

      @@rahultoggi4672 I still prefer real estate over
      stocks or crypto, Nfts. Perhaps it's because I had
      a front row seat watching so much carnage
      during the 2000 dotcom bubble and the
      2008-2009 financial crisis that has me jaded.

    • @noelstout3056
      @noelstout3056 Před 2 lety +4

      @Joe Robert. I firmly believe everyone striving for financial independence should own both stocks and real estate. The percentage weighting of each asset class as part of your portfolio will then be up to you to decide. At least with stocks, when the market is plunging, you can sell, albeit at a loss. Lots of people couldn't sell their real estate, couldn't afford to sell in 2007-2011.

    • @seanroger6954
      @seanroger6954 Před 2 lety +5

      @@noelstout3056 Absolutely, i made my first 6 figure at a go during a crash. I retired with a 7 figure portfolio and I'm currently receiving about $500k annual earnings. I didn't achieve that by playing safe. My earnings comes from stocks and profits from the crypto market as well. All this were possible with the guidance of my personal trading broker Frost Hilda, who helped build a portfolio that's has helped cleared my debt. Retirement came early with no regrets.

    • @rohitmajumdar1579
      @rohitmajumdar1579 Před 2 lety +2

      @@seanroger6954 I'm aware of Frost Hilda, how long
      has he been handling all these investments and
      how has he enhanced your earnings?

  • @valdanowill
    @valdanowill Před 4 lety +11

    How am I just finding this channel? You are brilliant.

    • @AbdullahZaman-tj7hp
      @AbdullahZaman-tj7hp Před 4 lety

      yes, this seems to be a good channel. I found it now too. also, check out my channel as well :)

    • @udaykhatry
      @udaykhatry Před 4 lety

      I loved these videos. I was kinda confused when the first clip ended. Then I loved it after the second video ended with a drink.

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      @illuminatitemple908 Před 3 lety

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  • @xVanillaForeverx
    @xVanillaForeverx Před 11 lety

    great vid keep doing these vids!!

  • @Aliancey
    @Aliancey Před 8 lety +13

    PE can also initiate an IPO on the share market, purchase heaps of shares thereby driving up the price of the shares. From there they entice others to buy the shares and when the company reaches over priced levels, the PE investors sell the shares to those who are still buying, make huge profits and walk away from the investment. Those who are left, lose their investment as the value of the company collaspes. This is a ruthless investment scheme that causes huge job losses and economic disruption. This is what happened to Dick Smith.

    • @jordanf8326
      @jordanf8326 Před 6 lety +1

      This is NOT what PE funds do. Fuck, you really are stupid.
      The majority of PE deals are not public companies.

    • @NigelMadzorera
      @NigelMadzorera Před 5 lety

      That’s really fucking illegal 😂😂

  • @ndumisongcobo2562
    @ndumisongcobo2562 Před 3 lety

    Nice man, thank you.

  • @mr675official
    @mr675official Před 9 měsíci +3

    The bank don't just lend the 9 million away like that. The idea behind LBO is to use the cash generated by the target company to to repay the debt taken. The aquirer typically uses the assets of the target company as collateral.

    • @dab0331
      @dab0331 Před 8 měsíci

      That's true of any bank loan. It didn't need to be stated

    • @milkmessiah5192
      @milkmessiah5192 Před 6 měsíci

      He literally says this in the first 2 minutes, bozo

    • @mr675official
      @mr675official Před 6 měsíci

      Yo moma is a bozo for having you @@milkmessiah5192

  • @theflorgeormix
    @theflorgeormix Před 12 lety

    excellent Paddy

  • @Beardedlady71
    @Beardedlady71 Před 12 lety +2

    you make it very easy to unedrstand - well done. i'm sure the PE Funds would rather maintain the mysticism around what they do!

  • @rayray2001111
    @rayray2001111 Před 3 lety

    Thank you so much

  • @richardmagasy2970
    @richardmagasy2970 Před 5 lety +3

    PE fund is not a synonyme for LBO fund. What you're talking about is a Buyout fund. PE is an umbrella term that includes VC, FoF, hedge funds etc.

    • @toomanyfrogs6702
      @toomanyfrogs6702 Před 4 lety +2

      A hedge fund is not a private equity. You are completely wrong. VC is PE. Hedge funds, PE, etc are considered alternative assets but hedge fund does not belong under private equity

    • @jameshuh8362
      @jameshuh8362 Před 3 lety

      @@toomanyfrogs6702 yup, but even then, some LPs like to separate out VC from their PE book

  • @violettracey
    @violettracey Před 3 dny

    Thanks!

  • @marqventures
    @marqventures Před 3 lety

    Thank you

  • @jonesr227
    @jonesr227 Před 12 lety

    Good job.

  • @jcamp434
    @jcamp434 Před 3 lety

    This guy is awesome.

  • @SanRemoMotelBar
    @SanRemoMotelBar Před 12 lety +2

    Great video, well explained

  • @stevenlerner5515
    @stevenlerner5515 Před rokem

    AMAZING VIDEO

  • @foyez5
    @foyez5 Před 12 lety

    Very good!

  • @hichamidahmedali6622
    @hichamidahmedali6622 Před 4 lety

    perfect video

  • @3deeanimator633
    @3deeanimator633 Před 3 lety +3

    What do you do for a living??

  • @alejandroj5249
    @alejandroj5249 Před 3 lety

    who does the analysis to know if that is a good investment? 1st and 2nd year financial analysts or those investors?

  • @justme-hh4vp
    @justme-hh4vp Před 4 lety +1

    Asset stripping, privatising gains and socialising losses

  • @jaden532
    @jaden532 Před 3 lety

    So PE is a risk/reward type deal and how much does one put into it to get started

  • @Falgunpathak
    @Falgunpathak Před 11 měsíci

    Thanks 👍🏻

  • @007nejihyuga
    @007nejihyuga Před 10 lety

    thankyou!!

  • @jubjubgurl
    @jubjubgurl Před 8 lety +92

    This was a really good explanation, thank you!

    • @Cowicide
      @Cowicide Před 4 lety

      Now here's some scummy details he left out: czcams.com/video/VUS8R3HzJY8/video.html

  • @Amoneycoolah
    @Amoneycoolah Před rokem

    But this explanation was flawless.

  • @bigmantingye3290
    @bigmantingye3290 Před 4 lety +2

    Very understandable, thanks man

  • @kdcruz75
    @kdcruz75 Před 12 lety

    there is a role of securitising the accounts receivables to fund the buyout ..

  • @lovelyday50
    @lovelyday50 Před 12 lety

    thanks!

  • @vicenterivera69
    @vicenterivera69 Před 4 lety

    cool video!

  • @ThePoshPrince
    @ThePoshPrince Před 4 lety

    Thanks

  • @3aknanangy
    @3aknanangy Před 11 lety

    very good

  • @yakkyuu12
    @yakkyuu12 Před 4 lety +1

    That was very good -- EXCEPT;
    What has BEEN happening with mutual funds, pensions and MORE -SO CALLED "professional" people who WORK for the investment side of YOUR pension is the FOLLOWING;
    Since this IS PRIVATE equity investing pensions and others -- HAVE -- invested in companies that give VERY high DIVIDENDS in return for the pensions money-- now pensions get a "so called" GUARANTEED dividend RETURN to HELP make it easier for pensions to make investment goal RETURNS.
    The BIG PROBLEM is; The HIGH dividend is GIVEN for a BAD REASON--- the company is a SERIOUS "JUNK" status debt company -- MEANING -- THE MAJORITY of BANKS and OTHER lending institutions --- WON'T RISK their MONEY on lending this BAD company --- ANY MONEY--- NONE!
    The Company-- KNOWS they have a "junk" status rating and a BIG, BIG, PROBLEM raising CREDIT lines and LOANS to STAY in BUSINESS!
    So--- they CAN'T get MONEY from NORMAL "LENDING institutions-- thus they go to ---- PRIVATE LENDERS-- PROMISE a VERY HIGH interest rate on the money THEY BORROW!
    The PENSION( the lender) DOES DO-- the due diligence -- but KNOWS the RISK of DEFAULT on the money -they LEND( YOUR ---- MONEY!!!) is VERY HIGH! Pension lenders and others,
    DECIDE--- if they lend and the default happens -- they have ownership of the DEFUNCT company and they just SELL the pieces( as described in the video).
    The BIG problem is the LACK of being ABLE to KNOW with ANY certainty--- the LENDER ( pensions and other lenders) --- will they GET ALL their money back on the SALE of the pieces!
    The BIGGER sharks, Goldman and JP Morgans-- just sit-- REFUSE to make ANY offer and wait and wait-- until NOW -- the lender CAVES in as they NEED to get a CERTAIN amount BACK to keep from
    just losing -- BIG MONEY!
    The Big sharks wait until the deal IS ON THEIR TERMS!
    The PENSIONS and others who ALL TOOK risk for the BIG dividend--- now SELL -- for PENNIES on EVERY dollar they gave AS PRIVATE Equity Lenders!
    To make this WORSE-- there is NO recourse for pension holders or other mutual fund holders AND ANNUITY holders as the FIDUCIARY responsibility is NOT applicable and they CHOSE the risk! JUST another reason to REMEMBER--- this is YOUR--- PRIVATE DEAL -- NO insurance, NO SEC -- to file charges! ALL you have is the PROPERTY or parts of the business( described in the video).
    The POSSIBLE BUYERS of YOUR --- PRIVATE DEAL --- ALL --- KNOW THIS(the Goldmans a nd JP Morgans)!!!
    AFTER 2008 crash --- there are A LOT of companies -- just TREADING WATER and DON'T QUALIFY for ANY bank loans. This has become a BIG business because of this!
    The TERM --- "JUNK BOND" -- is NOT applied -- for NO REASON!
    The -- EXTREME HIGH --- Dividend PAYERS --- "TOO GOOD TO BE TRUE" statement APPLIES--- the EXTREME high DIVIDEND is BAIT for investors!

  • @alexanderfischer541
    @alexanderfischer541 Před 3 lety

    love it man

  • @user-zl9sh9mz6h
    @user-zl9sh9mz6h Před 3 měsíci

    Workers MUST own and control the means of production.

  • @kathleenlandolt5936
    @kathleenlandolt5936 Před rokem +1

    Thank you for your very clear explanation of what a private equity fund is, and how the v average person's retirement fund can be indirectly involved and subject to the profits or losses inherent in them.

  • @Miscellaneouscoolvid
    @Miscellaneouscoolvid Před 11 lety +1

    Good explanation.thanks

  • @houdapurple
    @houdapurple Před 12 lety

    thanks

  • @kmuinde
    @kmuinde Před 3 lety +1

    Came here from tiktok

  • @arturoborges9440
    @arturoborges9440 Před 5 lety +1

    how do private equity funds underwrite and calculate every investment? meaning, what exactly are the sheets or instruments they use to calculate IRR, Equity Multiples, Cash flows, and overall underwrite and project for every fund?

    • @btw-hl9id
      @btw-hl9id Před 4 lety

      I'm not a private equity expert, (although I'm in finance) but I assume private equity firms looks at the main financial statements (Income Statement, Balance Sheet, Statement of Cash Flows) in order to evaluate the health and growth prospects of a company. They probably vary as private equity firms are not working with public companies, but I assume that's what they look at.

  • @darildsilva2451
    @darildsilva2451 Před 8 lety +2

    excellent bro :(

  • @bonaventureBarry
    @bonaventureBarry Před 12 lety +4

    love what you do. Great explanation, and we learn complicated concept.

  • @bryanalston1369
    @bryanalston1369 Před měsícem

    Brilliant

  • @shaharyarzahid4525
    @shaharyarzahid4525 Před 3 lety

    So basically you need a hell amount of investment in order to acquire a running business which is somehow not running great by any means. We need to fix it up and manage it for 5-10 years before flipping it right? But can you tell me will the investors be getting monthly salary or income or interest from the entire investment they did to acquire the business.

  • @waterfoker8558
    @waterfoker8558 Před 3 lety +1

    Basically Canada's "The Profit"

  • @susannnico
    @susannnico Před rokem +2

    Thanks for this amazing information !! If you don't find a means of multiplying money, you will wake up one day to realize that the money you thought you had, has finished. Investment is key, I pray that anyone who reads this will be successful in life

  • @user-dm8qv1nk1y
    @user-dm8qv1nk1y Před 2 měsíci +1

    Great words thanks sir.
    I have a question .
    Do these bunch of friends who bring £1million need to form a company or something else plz say few words once. Again I really appreciate your help with this.
    :)

  • @georgejsbrown
    @georgejsbrown Před 3 lety +1

    Is this the same with cars, planes and boats and luxury items

  • @farisallawati
    @farisallawati Před 12 lety +1

    Cool explanation.. You need a stand for your video camera though

  • @johnfletcher5627
    @johnfletcher5627 Před 3 lety

    Amazing

  • @leonvinhle
    @leonvinhle Před 12 lety +2

    Thanks prof! But this's simple model!
    (leveraged buyouts, venture capital, growth capital, distressed investments)

  • @suzihurley5827
    @suzihurley5827 Před 2 lety

    Love this! Very straight forward