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Activist Hedge Funds: The Superhero Offspring of Private Equity Firms and Normal Hedge Funds?

Brian DeChesare

If you’re thinking about exit opportunities and can’t decide between private equity and hedge funds , activist hedge funds might be your solution. Similar to private equity firms, they operate on longer time frames, influence companies’ operations and finances, and might catalyze major changes, such as spin-offs or acquisitions.

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Recapitalization: Pros and Cons

Value Scout

It involves the partial sale of the company to private equity firms or venture capitalists. Recapitalization helps stabilize the capital structure of a company by restructuring its equity and debt. They gain both capital resources and access to professional strategic counsel to maximize business value.

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Leveraged Buyouts

Andrew Stolz

The buyer (the “sponsor”) raises debt and equity to acquire the target. It borrows the majority of the purchase price and contributes proportionately small equity investment. The LBO ratios can go to 90% of debt and 10% of equity. A private equity firm aims a target return of around 20 – 25% (WallStreetMojo, 2018).

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How Does Corporate Ownership Affect Employee Compensation?

Reynolds Holding

Over the past 30 years, private equity firms and hedge funds have reshaped the landscape of corporate ownership. By 2022, firms under private equity management employed over 11 million people, nearly 10 percent of the U.S. For instance, private-equity-owned companies pay 4.9

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ZeroFox to be Acquired by Haveli

Benzinga

(NASDAQ: ZFOX ) ("ZeroFox"), a leading provider of external cybersecurity, today announced that it has entered into a definitive agreement to be acquired by Haveli Investments, a technology-focused private equity firm, in an all-cash transaction with an enterprise value of approximately $350 million.

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Credit Hedge Funds: Full Guide to the Industry, Strategies, Recruiting, and Careers

Brian DeChesare

Anyone who’s ever traded stocks can understand long/short equity , and even simple global macro trades are easy to explain to the average person. To simplify, we can say that credit hedge funds operate in three main areas: Long/Short Credit – It’s similar to long/short equity , but with bonds rather than stocks. See the example above.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

These multiples are applied to target company’s latest financials such as revenue, earnings and book value of equity to arrive at an estimate of enterprise value or equity value. The equity portion is typically provided by the private equity firm leading the buyout.