Private equity explained

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  • Опубликовано: 12 янв 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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Комментарии • 357

  • @Deen_WestYorkshire
    @Deen_WestYorkshire 4 месяца назад +22

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

  • @Exatic
    @Exatic 3 года назад +259

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

  • @Ronniek-lo8pw
    @Ronniek-lo8pw 3 года назад +414

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

  • @jaydenjanshego6978
    @jaydenjanshego6978 3 года назад +173

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

    • @quagmire1130
      @quagmire1130 3 года назад +1

      Yeaaaa you got me there

    • @MegaJimbob125
      @MegaJimbob125 3 года назад +5

      Yep saw a few people with nice cars saying they were into private equity. Came here to learn what is was 📝

    • @mysticgamerent
      @mysticgamerent 3 года назад +2

      Nah bro

    • @lilblondeboy4142
      @lilblondeboy4142 3 года назад +1

      Lol

    • @ocularpatdown
      @ocularpatdown Месяц назад

      It’s parasitic and harmful

  • @ericthered9655
    @ericthered9655 3 года назад +8

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

  • @Tubeytime
    @Tubeytime 8 месяцев назад +14

    Beautifully explained, the power of art shines forth once again

  • @randallorozco5680
    @randallorozco5680 3 года назад +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.

  • @user-qp2qz8de5h
    @user-qp2qz8de5h 3 года назад +36

    The most direct and easiest way to understand about PE!

  • @abhinavitsmebellamy
    @abhinavitsmebellamy 4 года назад +10

    Thank you, Sensei!!

  • @Guss425
    @Guss425 2 года назад +9

    This is really well explained

  • @muzammilbabar766
    @muzammilbabar766 2 года назад +5

    De Niro teaching us is a blessing.

  • @ntulisbusiso6409
    @ntulisbusiso6409 3 года назад

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

  • @coinstacks2455
    @coinstacks2455 7 лет назад +3

    Great job thanks for the info.

  • @vicahmed221
    @vicahmed221 Год назад +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. Год назад

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

    • @vicahmed221.
      @vicahmed221. Год назад +1

      @@Alexedmartin. Alright so generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (REGINA LOUISE COLLARO) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She is quite popular for her services so you might have heard of her.
      She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy...So I’ll advise you do get a good Investment advisor for yourself.

    • @Alexedmartin.
      @Alexedmartin. Год назад

      @@vicahmed221. 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 Год назад

      @@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 Год назад

      @@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

  • @vinniecooper1983
    @vinniecooper1983 4 года назад

    Excellent presentation!

  • @ApartmentTrusteescom
    @ApartmentTrusteescom 10 лет назад +2

    Nice explanation.

  • @suhailakhoonable
    @suhailakhoonable 3 года назад +1

    Excellent explanation

  • @oluwapoloorejayeoba7949
    @oluwapoloorejayeoba7949 2 года назад

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

  • @thabo1504
    @thabo1504 3 года назад

    Brilliant explanation!!!

  • @EnricoSalilo
    @EnricoSalilo 2 года назад

    Very good and clear explanation.. Thank youuu..

  • @vikramsd186
    @vikramsd186 9 лет назад +1

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

  • @pokechef7
    @pokechef7 4 года назад

    well done. thank you for this

  • @timesmotivation7802
    @timesmotivation7802 3 года назад

    Thank you! Great information!

  • @wasanfan
    @wasanfan 11 лет назад

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

  • @onetamer
    @onetamer 5 лет назад +1

    Super clear 👍

  • @surrealentertainment9558
    @surrealentertainment9558 3 года назад

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

  • @malynaph7683
    @malynaph7683 12 лет назад +69

    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 3 года назад +3

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

    • @sammy2551
      @sammy2551 3 года назад +2

      If you are french, I am Swedish

    • @TheMoumou120
      @TheMoumou120 Год назад

      ​@@dissmr 🤌

    • @dvoiceotruth
      @dvoiceotruth Месяц назад

      bonjour

  • @peterponcedeleon3368
    @peterponcedeleon3368 4 года назад +2

    Excellent

  • @chancenchoices9983
    @chancenchoices9983 3 года назад

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

  • @ecomstories
    @ecomstories 8 месяцев назад

    Nice Video! Thanks for explaining!

  • @vferraz88
    @vferraz88 3 года назад

    best teacher ever

  • @hardstylelife5749
    @hardstylelife5749 13 дней назад

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

  • @andrewashmore8000
    @andrewashmore8000 11 месяцев назад

    Brilliant explanation. !!

  • @superman83080
    @superman83080 2 года назад

    Greatly explained

  • @williejr71williams22
    @williejr71williams22 5 месяцев назад

    Excellent job 👏

  • @m_timil9352
    @m_timil9352 3 года назад

    best teacher on yt

  • @mrityunjoynath7673
    @mrityunjoynath7673 Год назад

    Great concept, great video.

  • @valdanowill
    @valdanowill 4 года назад +11

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

    • @AbdullahZaman-tj7hp
      @AbdullahZaman-tj7hp 4 года назад

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

    • @udaykhatry
      @udaykhatry 4 года назад

      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.

    • @illuminatitemple908
      @illuminatitemple908 3 года назад

      Join Illuminati lodge today to gain limitless wealth and power. If you're ready to join Illuminati lodge headquarters in the USA today. Kindly inbox Agent Mr, Richard Hahn on whats-app mobile now or call (+12133573827).
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  • @dees900
    @dees900 2 года назад

    fantastic video...thank you very much

  • @seymourelykeley
    @seymourelykeley 4 года назад

    very good job of explaining.

  • @JeremyHaynesTraining
    @JeremyHaynesTraining 2 года назад

    Solid video - thank you

  • @hichamidahmedali6622
    @hichamidahmedali6622 4 года назад

    perfect video

  • @xVanillaForeverx
    @xVanillaForeverx 10 лет назад

    great vid keep doing these vids!!

  • @maze396
    @maze396 5 лет назад

    Bruh this explanation was great!

  • @theflorgeormix
    @theflorgeormix 12 лет назад

    excellent Paddy

  • @SimonChengHK
    @SimonChengHK 11 лет назад

    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

  • @007nejihyuga
    @007nejihyuga 10 лет назад

    thankyou!!

  • @ndumisongcobo2562
    @ndumisongcobo2562 3 года назад

    Nice man, thank you.

  • @jonesr227
    @jonesr227 12 лет назад

    Good job.

  • @foyez5
    @foyez5 12 лет назад

    Very good!

  • @billnolan5375
    @billnolan5375 2 года назад +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 2 года назад +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 2 года назад +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 2 года назад +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 2 года назад +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 2 года назад +2

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

  • @jcamp434
    @jcamp434 3 года назад

    This guy is awesome.

  • @Falgunpathak
    @Falgunpathak 10 месяцев назад

    Thanks 👍🏻

  • @mr675official
    @mr675official 8 месяцев назад +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 7 месяцев назад

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

    • @milkmessiah5192
      @milkmessiah5192 5 месяцев назад

      He literally says this in the first 2 minutes, bozo

    • @mr675official
      @mr675official 5 месяцев назад

      Yo moma is a bozo for having you @@milkmessiah5192

  • @rayray2001111
    @rayray2001111 3 года назад

    Thank you so much

  • @marquezmobley3081
    @marquezmobley3081 3 года назад

    Thank you

  • @lovelyday50
    @lovelyday50 12 лет назад

    thanks!

  • @stevenlerner5515
    @stevenlerner5515 Год назад

    AMAZING VIDEO

  • @jonathansridhar
    @jonathansridhar 3 года назад +1

    Very quick and easy explanation thanks!

  • @jaden532
    @jaden532 3 года назад

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

  • @alejandroj5249
    @alejandroj5249 3 года назад

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

  • @3aknanangy
    @3aknanangy 11 лет назад

    very good

  • @ThePoshPrince
    @ThePoshPrince 4 года назад

    Thanks

  • @johnfletcher5627
    @johnfletcher5627 3 года назад

    Amazing

  • @Aliancey
    @Aliancey 8 лет назад +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 6 лет назад +1

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

    • @NigelMadzorera
      @NigelMadzorera 5 лет назад

      That’s really fucking illegal 😂😂

  • @richardmagasy2970
    @richardmagasy2970 5 лет назад +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 4 года назад +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 3 года назад

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

  • @guildsfordbrothers6095
    @guildsfordbrothers6095 11 лет назад +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.

  • @luisfernandes2522
    @luisfernandes2522 2 года назад +2

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

  • @houdapurple
    @houdapurple 12 лет назад

    thanks

  • @bryanalston1369
    @bryanalston1369 6 дней назад

    Brilliant

  • @SanRemoMotelBar
    @SanRemoMotelBar 11 лет назад +2

    Great video, well explained

  • @3deeanimator633
    @3deeanimator633 3 года назад +3

    What do you do for a living??

  • @kdcruz75
    @kdcruz75 12 лет назад

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

  • @Amoneycoolah
    @Amoneycoolah Год назад

    But this explanation was flawless.

  • @vicenterivera69
    @vicenterivera69 4 года назад

    cool video!

  • @alexanderfischer541
    @alexanderfischer541 3 года назад

    love it man

  • @Beardedlady71
    @Beardedlady71 12 лет назад +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!

  • @user-zl9sh9mz6h
    @user-zl9sh9mz6h 2 месяца назад

    Workers MUST own and control the means of production.

  • @Jusonomous
    @Jusonomous 6 месяцев назад

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

  • @georgejsbrown
    @georgejsbrown 3 года назад +1

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

  • @andthenwhat3506
    @andthenwhat3506 3 года назад +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

  • @jubjubgurl
    @jubjubgurl 8 лет назад +92

    This was a really good explanation, thank you!

    • @Cowicide
      @Cowicide 4 года назад

      Now here's some scummy details he left out: ruclips.net/video/VUS8R3HzJY8/видео.html

  • @bugzmoney434
    @bugzmoney434 3 года назад

    Where do u get the money from to Renovate the house

  • @susannnico
    @susannnico Год назад +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

  • @Miscellaneouscoolvid
    @Miscellaneouscoolvid 11 лет назад +1

    Good explanation.thanks

  • @darildsilva2451
    @darildsilva2451 8 лет назад +2

    excellent bro :(

  • @kathleenlandolt5936
    @kathleenlandolt5936 Год назад +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.

  • @bigmantingye3290
    @bigmantingye3290 4 года назад +2

    Very understandable, thanks man

  • @rogerkatakowski323
    @rogerkatakowski323 29 дней назад

    You missed the Reagan/Romney PE corporate where they barrow from the pension fund to pay the investor 38% interest and often the local bank till they're depleted the company to near ruin...

  • @shaharyarzahid4525
    @shaharyarzahid4525 3 года назад

    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.

  • @yakkyuu12
    @yakkyuu12 3 года назад +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!

  • @user-dm8qv1nk1y
    @user-dm8qv1nk1y 2 месяца назад +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.
    :)

  • @rajgsrinivas
    @rajgsrinivas 8 лет назад

    Damn good

  • @MySudheer143
    @MySudheer143 4 года назад +7

    It was so nice of you to come up with such an example. Thank You!

  • @arturoborges9440
    @arturoborges9440 5 лет назад +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 4 года назад

      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.

  • @write2yibo
    @write2yibo 7 месяцев назад

    what happen when they cant flip the company, or they are over leveraged? they just default on debt?

  • @sandeepsadula2334
    @sandeepsadula2334 8 лет назад

    nice

  • @farisallawati
    @farisallawati 12 лет назад +1

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

  • @suzihurley5827
    @suzihurley5827 2 года назад

    Love this! Very straight forward

  • @leonvinhle
    @leonvinhle 12 лет назад +2

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