Harvard Corporate Governance

MAY 23, 2023

As private corporations have found it easier in recent years to raise capital from the private markets, the number of public firms listed on U.S. Why tap public investors for finance, and become exposed to burdensome regulation and the vicissitudes of the public markets, when growth can be sustained with private capital?

Equity 213

Equity Marketability Market Capitalization Finance 213

Harvard Corporate Governance

AUGUST 1, 2023

Posted by Mary Ann Deignan, Rich Thomas, and Kathryn Night, Lazard, on Tuesday, August 1, 2023 Editor's Note: Mary Ann Deignan is Head of Capital Markets Advisory, and Rich Thomas and Kathryn Night are Managing Directors in the Capital Markets Advisory group at Lazard. individuals, private equity funds, family offices).

Marketability 242

Marketability Total Shareholder Return Alpha Market Capitalization 242

Harvard Corporate Governance

JULY 29, 2024

an EV automaker taken public in late 2020 via a reverse merger with a SPAC [1] that sported a market value exceeding $6 billion within several months of the deal closing, was another reminder of how woefully many of these post-reverse merger SPACs have continued to perform. The recent Chapter 11 filing of Fisker, Inc., 4] (more…)

Marketability 251

Marketability Corporate Finance Finance Equity 251

Harvard Corporate Governance

NOVEMBER 8, 2022

This post is based on his recent paper , forthcoming in Capital Markets Law Journal, and is part of the Delaware law series ; links to other posts in the series are available here. Hu is the Allan Shivers Chair in the Law of Banking and Finance at the University of Texas Law School.

Equity 200

Equity Banking Finance Marketability 200

Harvard Corporate Governance

MAY 15, 2022

Significant volatility continues to disrupt the equity markets, with the major stock indexes swinging multiple percentage points often on a daily basis. This additional regulatory delay means that transactions, and in particular deals involving stock consideration, are increasingly vulnerable to market risk over a longer time horizon.

Marketability 244

Marketability Market Risk Equity 244

Brian DeChesare

JANUARY 22, 2025

We sometimes get questions about why we dont offer an equity research course. People are convinced that financial modeling in equity research is vastly different from investment banking and that research requires different or more specialized skills. IB is all about deals , while ER is all about coverage.

Equity 64

Equity Banking Start-ups Finance 64

Harvard Corporate Governance

JULY 17, 2023

In a recent Harvard Law School Forum on Corporate Governance post we drew attention to declining equity markets in the United Kingdom and canvassed various possible explanations for the trend. The UK has, the United States aside, a uniquely well-developed equity market, with origins traceable back to the 16 th century.

Marketability 189

Marketability Equity Finance 189

Harvard Corporate Governance

JANUARY 13, 2024

In our memo early last year, we noted that private equity investors and dealmakers faced considerable uncertainty heading into 2023 following a challenging 2022. Not many would have predicted the rebound in equity markets in the second half of 2023 or the rising (for now) prospects of a soft landing for the broader U.S.

Equity 163

Equity Finance Marketability 163

Harvard Corporate Governance

JUNE 26, 2024

Securities and Exchange Commission (“SEC”) filed its third matter this year involving “AI washing”—namely, alleged misstatements or omissions by securities market participants about the use of artificial intelligence (“AI”). more…)

Marketability 201

Marketability Technology Equity 201

Harvard Corporate Governance

OCTOBER 20, 2022

For a variety of reasons, 2022 has been a challenging year in the market and particularly within the industries that are traditionally heaviest in terms of public offerings ¾ biotech and high tech. This article focuses on understanding practices related to equity awards made at or around IPO.

Equity 144

Equity Marketability 144

Global Finance

JUNE 17, 2024

A 10-year veteran at DBS Bank, Karoonyavanich recently expanded his role to cover all Equity Capital Markets business for the bank globally when the firm merged its equities, fixed income and brokerage businesses to form a new Investment Banking unit. Its Hong Kong market share surged from a mere 0.2% in the same period.

Equity 111

Equity Marketability Banking Start-ups 111

Harvard Corporate Governance

MAY 10, 2024

The private capital industry has experienced a meteoric rise over the past two decades, with estimates of capital invested in vehicles like private equity and venture capital now exceeding $10 trillion. Private capital funds, like private equity, are typically governed by complex limited partnership agreements (LPAs).

Equity 129

Equity Finance Marketability 129

Harvard Corporate Governance

OCTOBER 5, 2023

Russell 3000 equity plan proposals are facing historically low shareholder support and higher failure rates in 2023. These headwinds likely reflect both increased shareholder and proxy advisor expectations in equity plan sizing and increased share usage pressure at companies in depressed markets. more…)

Equity 130

Equity Marketability 130

Harvard Corporate Governance

AUGUST 28, 2023

Pension funds and institutional investors around the world have been allocating an increasing fraction of their assets under management to private equity (PE), venture capital (VC), and other types of private funds. in 2020, and 79% of investors stating that they expect to allocate a larger proportion of their funds to private equity by 2025.

Venture Capital Fund 189

Venture Capital Fund Equity Finance Marketability 189

Harvard Corporate Governance

FEBRUARY 21, 2024

3] The Grant On January 21, 2018, Tesla’s Board of Directors (the “Board”) [4] unanimously approved the Grant, which would vest based on Tesla’s achievement of certain market capitalization goals, as well as operational milestones related to revenue and adjusted EBITDA targets. The process arrived at an unfair price.” [3]

Equity 225

Equity EBITDA Market Capitalization Marketability 225

Harvard Corporate Governance

FEBRUARY 21, 2023

As time passes and its investors age, the TDF shifts the portfolio allocation automatically from higher to lower equity share, following the prescriptions of life-cycle models of optimal portfolio choice. The specific asset allocation depends on the time until the investor’s expected retirement date, which is the fund’s target date.

Marketability 210

Marketability Finance Equity 210

Mckinsey and Company

FEBRUARY 13, 2025

Global uncertainties remained in 2024, but the path forward for private equity became clearer, with a rebound in dealmaking and distributions.

Equity 103

Equity Marketability Corporate Finance Finance 103

Harvard Corporate Governance

AUGUST 20, 2024

The Massachusetts legislative session for 2024 has come to a close without the passage of a bill that would have targeted private equity in healthcare. The end of the Massachusetts legislative session without the passage of a bill on this matter comes as a reprieve in a moment of escalating tension for investors in the healthcare sector.

Equity 120

Equity Marketability 120

Harvard Corporate Governance

APRIL 16, 2024

The Chinese stock market started in 1990 with the establishment of two domestic stock exchanges (the “A share” market): the Shanghai Stock Exchange (SSE hereafter) and the Shenzhen Stock Exchange (SZSE). The A share market is the second largest in the world in terms of total market capitalization, trailing only the US equity markets.

Marketability 157

Marketability Finance Market Capitalization Banking 157

Equidam

AUGUST 21, 2024

Invested capital, equity stake and valuation: how are they connected? Investors will typically have an ownership target in mind, and potentially a typical investment amount, so you will need to negotiate around that to ensure you get sufficient capital in return for a reasonable amount of equity.

Equity 116

Equity Start-ups Finance Marketability 116

Harvard Corporate Governance

APRIL 21, 2023

In July 2021, State Street Global Advisors, Russell Reynolds Associates, and the Ford Foundation partnered to study best practices for effective board oversight of racial and ethnic diversity, equity, and inclusion (“ The Board’s Oversight of Racial and Ethnic Diversity, Equity, and Inclusion ”).

Equity 309

Equity Marketability 309

Brian DeChesare

MARCH 13, 2024

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 105

Equity Start-ups Marketability Banking 105

Harvard Corporate Governance

JANUARY 20, 2025

For example, during our sample period, the market share of RI equity funds in Norway constituted about 48% of the total equity mutual fund assets under management, while in Australia the comparable figure is 11% and, in the U.S., a little less than 5%. Thus, the question arises as to the reasons for these wide disparities.

Finance 120

Finance Equity Marketability 120

Harvard Corporate Governance

AUGUST 13, 2024

Introduction Publicly traded firms face pressure from equity market investors with short investment horizons. This post is based on their recent article published in the Journal of Financial Economics. This forces companies to make decisions that favor immediate gains over long-term value creation. more…)

Finance 273

Finance Equity Marketability 273

Harvard Corporate Governance

FEBRUARY 2, 2024

corporate bond market, holding approximately $1.5 Consequently, fund families managing both equity and bond funds are more likely to hold stocks and bonds from the same company simultaneously (“dual holdings”). In the last decade, investment in corporate bonds has seen a surge through bond mutual funds. publicly traded firms.

Corporate Finance 284

Corporate Finance Finance Equity Marketability 284

Harvard Corporate Governance

JUNE 18, 2024

The private equity business model has reinvented itself over the years, with continuation funds now serving as its latest development. These funds offer a creative solution to circumvent the constraints of the traditional private equity model by enabling fund sponsors to retain assets beyond the customary 10-year fund term.

Equity 111

Equity Marketability 111

Brian DeChesare

MAY 15, 2024

Private equity value creation came on my radar a few years ago when I noticed something: Even though traditional PE deal roles were not doing well, “operational” or “value creation” teams still seemed to be recruiting. What Does the Private Equity Value Creation Team Do in Real Life? Why is PE Value Creation Suddenly “Hot”?

Equity 105

Equity Private Equity Firm Start-ups EBITDA 105

Harvard Corporate Governance

NOVEMBER 28, 2022

But since then, the markets have shifted. The markets in 2022 still have an abundance of capital for both corporate and private equity (PE) to fund deals. As market volatility stifles IPO activity, alternative sources of capital (including from PE) become more appealing. This post is based on their PwC memorandum.

Marketability 295

Marketability Equity 295

Harvard Corporate Governance

APRIL 20, 2023

Shifting from equity to debt financing is not simply a matter of optimizing a firm’s cost of capital, however. In creditor disputes, by contrast, courts tend to limit their role to formal contract interpretation and procedural oversight, often reaching results at odds with both market expectations and notions of fairness. industries.

Debt Financing 257

Debt Financing Equity Finance Marketability 257

Musings on Markets

OCTOBER 4, 2023

That recovery notwithstanding, uncertainties about inflation and the economy remained unresolved, and those uncertainties became part of the market story in the third quarter of 2023. The Markets in the Third Quarter Coming off a year of rising rates in 2022, interest rates have continued to command center stage in 2023.

Marketability 121

Marketability Start-ups Risk Premium Treasury 121

Harvard Corporate Governance

JUNE 27, 2023

It is no exaggeration to say that over its roughly forty-year history, private equity has revolutionized both corporate finance and corporate governance. Today, private equity is one of the major global asset classes, and it has attracted a truly staggering amount of capital over a relatively short period of time.

Corporate Finance 225

Corporate Finance Finance Equity Marketability 225

Scott Mashuda

DECEMBER 19, 2024

The Federal Reserve’s recent monetary easing 75-basis-points in rate cuts with more cuts expected has created an unprecedented opportunity in lower middle market M&A. This shift from inflation-fighting to growth stimulus has fundamentally altered market dynamics, putting sellers firmly in control.

Marketability 52

Marketability Private Equity Firm Equity Banking 52

Financial Times M&A

SEPTEMBER 21, 2023

Complaint alleges New York-based firm consolidated market to become ‘dominant player’ for anaesthesia services in Texas

Equity 140

Equity Marketability 140

Brian DeChesare

JANUARY 24, 2024

Let’s start with the elephant in the room: yes, we’ve covered the growth equity case study before, but I’m doing it again because I don’t think the previous examples were great. So, you can think of this example and tutorial as “Growth Equity Case Study: The Final Form.” They over-complicated the financial model (e.g.,

Equity 105

Equity Private Equity Firm Start-ups Comps 105

Financial Times M&A

SEPTEMBER 26, 2024

Company backed by investors including Clayton, Dubilier & Rice and Hellman & Friedman prepares €4.4bn dividend

Dividends 110

Dividends Equity Marketability 110

Harvard Corporate Governance

JUNE 9, 2022

Rich, at last year’s conference, you and I spoke about how technology has transformed and continues to transform our equity markets. [1]. For example, retail investors have greater access to markets than any time in the past. Further, the markets have become increasingly hidden from view. equity volume.

Equity 201

Equity Marketability Technology 201

Harvard Corporate Governance

MARCH 28, 2023

billion and median market capitalization of $7.0 This post investigates compensation actions for CEOs and CFOs at S&P 1500 companies that have fiscal year ends between 9/30 and 11/30. The sample consists of fifty cross-industry companies with median revenue of $4.6 incentive compensation) slightly lower for CFOs (more…)

Equity 226

Equity Market Capitalization Marketability 226