You're about to create your best presentation ever

Presentation To Private Equity For Funding Template

Create your presentation by reusing one of our great community templates.

Private Equity

Transcript: Merchant bankers in London and Paris financed industrial concerns in the 1850s; most notably Crédit Mobilier, founded in 1854 by Jacob and Isaac Pereire, who together with New York based Jay Cooke financed the United States Transcontinental Railroad. J. Pierpont Morgan's 1901 acquisition of Carnegie Steel Company from Andrew Carnegie and Henry Phipps for $480 million represents the first true major buyout. In 1938, Laurance S. Rockefeller helped finance the creation of both Eastern Air Lines and Douglas Aircraft and the Rockefeller family had vast holdings in a variety of companies. Eric M. Warburg founded E.M. Warburg & Co. in 1938, which would ultimately become Warburg Pincus, with investments in both leveraged buyouts and venture capital. India gets major of its start ups funded from Singapore. Singapore acts as Hub for start up VC's in ASIA. First two venture capital firms in 1946: American Research and Development Corporation (ARDC, By Georges Doriot, the "father of venture capitalism ) and J.H. Whitney & Company. ARDC is credited with the first major venture capital success story when its 1957 investment of $70,000 in Digital Equipment Corporation (DEC) would be valued at over $355 million after the company's initial public offering in 1968 (representing a return of over 500 times on its investment and an annualized rate of return of 101%) ARDC total investment in 150 firms. First two Ventured Start ups :- a) Fairchild Semiconductor (1957) b) Venrock Associates (1969) Different Stages of a start up has different roles of funding. A hypothetical Start up goes from a IDEA to IPO. It goes from the owner getting 100% of nothing to some amount of shares in a big company and getting the returns on investments to all the fund providers along with the owner himself. 1946-81 SMALL FUNDING 1982-93- The first boom and bust cycle, was characterized by the dramatic surge in leveraged buyout activity financed by junk bonds and culminating in the massive buyout of RJR Nabisco before the near collapse of the leveraged buyout industry in the late 1980s and early 1990s 1992-2002- The second boom and bust cycle emerged from the ashes of the savings and loan crisis, the insider trading scandals, the real estate market collapse and the recession of the early 1990s. This period saw the emergence of more institutionalized private equity firms, ultimately culminating in the massive Dot-com bubble in 1999 and 2000. 2003-07- The third boom and bust cycle came in the wake of the collapse of the Dot-com bubble—leveraged buyouts reach unparalleled size and the institutionalization of private equity firms is exemplified by the Blackstone Group's 2007 initial public offering. Analyzing the potential in the plan of the start up, the ROI and the exit strategies. Getting availability of the funds with other investors( particularly in case of VC's ). Setting terms of the Equity Funding. Final Documentation. Takes active part in the functioning and working of the firm. Exits whenever they want to with good ROI ( generally by selling the investment or selling out an IPO ) How This Funding Works Venture Capitalist :- Invests in either a firm which is running and needs cash for growth. Angle Investors :- Invests in a plan that is still on paper and needs funds for execution. Leveraged buyout funds :- Typically acquire controlling stakes, either alone or in partnership with other PE firms, of mature, cash-flow-stable companies. Growth equity funds invest in more mature businesses that are looking to scale operations (organically or through M&A) and enter new markets Private Equity Segmentation The First's in Private Equity AngelList: It has been used by more than 1,000 companies to find accredited investors -- often a mix of "angels" and venture capitalists, but smaller investors can play, too. CircleUp: San Francisco startup specializes in helping inventors of consumer products such as pet food and organic snacks find investors. Crowdtilt: "Groupfunding" site backed by Y Combinator lets groups of friends launch funding campaigns for projects or purchases; money is collected via credit card, and the site takes a cut. FundAnything: The site launched by Donald Trump to offer artists, entrepreneurs and philanthropists "money for their dreams." FundersClub: It was launched in July 2012 as an "online venture capital firm" whose money comes from individual accredited investors. Kickstarter: Best known as a place to find backers for an artistic endeavor or invention, but small tech companies and other businesses can also launch funding campaigns. Liquidnet: It offers a platform to let private companies sell shares directly to institutional investors. SecondMarket: The firm also allows for the buying of private-company shares, but by individuals. Wefunder: It offers "crowdfunding for startups," lets investors put in as little as $1,000 and is making plans to welcome non-accredited investors once federal rules permit. Different platforms available

Private Funding

Transcript: BBC Click 'Register New User' and insert all personal information required. Once you are logged in open the drop down menu and select 'Grants for the Arts' then start application. You can get funding for workshops, shows, plays, research and more. An example of something you can get funding for is getting funding for a playwright to write a play and then for you to put on workshops about what was written - to make no profit. Sometimes fund raising can be a charity event. Private Funding Community Empowerment LTD Some Other Funding Options... Grant offer (over three years): £2,570,924 Income - Any money made from the show/ money coming in. From Yorkshire - Grant Recipient: Doncaster Community Arts (DARTS) A grant is financial backing for a non profit project that is awarded through a competitive application process and is paid back by furthering the grantor aims. Grant offer (over three years): £929,079 When you fund a project by raising lots of small amounts of money from a large number of people. Public Engagement Some of the largest foundations provide funding for many types of activities besides the arts, while others concentrate exclusively on the arts and humanities, or even narrow their focus to the performing arts. Successful Applicant #1 Key Words ...And Examples/Definitions Of Them! In Kind Support Pro's and Cons Confirm your email and log into your new user! Go to www.artscouncil.org.uk and hover the mouse over 'Funding'. Artistic Vision - When an artist combines their knowledge and philosophy of life with their art. It is unique to each person. How to apply for funding through the Arts Council Private funding is where a company/organisation gives a sum of money towards a project in the arts. It keeps a lot of arts organisations in existence. (An example not to do with the arts that may help is when huge logo's are on formula one cars. The companies who sponsor the racer are examples of public funding.) "Watermans will lead a consortium of seven Hounslow organisations, including a key community arts organisation, a community network, the local art service provider, Hounslow Music Service and the local authority. Their 10-year vision aims to build a confident, colourful and creative borough focused on the development of four town centres under the theme 'Hounslow coming together'. Funding will support a group of artistic partners to come together and address issues affecting engagement across the borough based in these four hub locations." For example - Crowd Funding York City Council "Made in Corby is an exciting and ambitious programme that recognises and draws inspiration from the identity and reputation of Corby as a making place. It will ensure that more local people than ever before will see, experience, create and take part in high quality arts activities on every estate and in every village. All decisions will be made through a real and genuine partnership between Corby's communities, artists, and arts and voluntary organisations. Activities will be ambitious, aiming to bring the best local, national and international artists to make work with, for and in Corby's communities. All activities will invest in Corby, its people and its skills - making Corby, and all its communities, stronger, more creative and more confident in the future." In the beginning, you only receive 90% of your grant. After the project has ended you submit an evaluation and then receive the final 10%. Budget - A detailed breakdown of the money you need. With private funding there is a higher chance of receiving the money because compared to public funding there is much less competition. Also with private funding, you are more likely to receive the money if you can incorporate the company's product into what you want to do like using their product as a prop or having their logo on the posters for example. Funding For The Arts From London - Grant recipient: Watermans What is a grant? Key Words Match Funding Expenditure - The amount of money you spend. Succesful Applicant #3 Grant offer (over three years): £1,000,000 (Describes the involvement of specialists listening to, developing their understanding of and interacting with non-specialists.) Support in Kind is when a third party organisation or investor cannot/does not pay you money towards the project but pays you with materials such as food and costume or with space for example paying to rent rehearsal space or paying for the use of the theatre during the run of the show. National Lottery This will open a drop down menu. Select 'Online Application Portal'. Grant - Money you receive that you don't have to pay back. About Funding How to apply for funding through the Arts Council Complete the eligibility check An estimate of the income and expenditure over a set amount of time. The Arts Council "DARTS (Doncaster Community Arts) led the bidding process on behalf of a small consortium with Doncaster's brand new Performance Venue and Doncaster Voluntary Arts Network. The

Private Equity

Transcript: Private Equity By Max Horton The goal of today's meeting is to create a new private equity firm for the Derryfield School Creating a Long Term Plan Derryfield's Future She saw what Google did when it created Google Venture (GV) Unorthodox idea to better the school Create an independent firm profits will be funneled to the improvement of the school Dr. Carter's Vision Vision Private Equity Venture Capital Private Placement 3 Main Types of Firms What is PE? Private Equity Invest in companies with techniques like leveraged buyouts Buying mature companies to give a makeover so that they become profitable Most popular form First leveraged buyout by JP Morgan in 1901 of Carnegie Steel Corporation Private Equity Pros Allows companies to grow outside of the public eye A Harvard study found that companies backed by private equity performed better than their counterparts in the stock market Private equity offered networking and funding Make about 2% annually on administration fees and 20% on profits of company Pros to Private Equity Cons Hard to liquidate Need to find a person/company willing to buy all the assets Not like the stock market where oyu can just sell Price of assets is determined through agreement, not driven by market forces could be good or bad Downsides to Private Equity Invest in young, growing or emerging companies Google Ventures invested in Uber and Nest Not always just monetary investment May help with technical or managerial expertise Want to invest in companies with strong business plan and have a lot of room for growth Venture Capital Venture Capital Pros Have high rate of return on investment Investors get liquidity in company After a certain amount of time, like 4 to 6 years, the investors leave the company through a merger, acquisition or IPO Benefits of Venture Capital Pros Due to being highly profitable, they are also very risky investments Risk-return paradox Rarely obtain majority control Need to do a lot of background research before investing Investing a lot of money Downsides to Venture Capital The sell of securities to a relatively small number of select investors Investors like large banks, mutual funds, insurance companies and pension funds Not open to the general market like a stock Used to raise short term money for the company and long term money for investors Private Placement Private Placement Pros The sell of securities to a relatively small number of select investors like banks and mutual funds Used to raise short term money for the company and long term money for investors This type of investment isn’t regulated by the SEC Can get money faster with less hoops to jump through Information of the deal is not disclosed The firm can remain privately owned Benefits of Private Placement Cons Investing is not as secure because not backed by SEC Can loss a lot of money So have to know what you’re doing Downsides to Private Placement Any of these types of investments will offer Derryfield endless opportunities to grow Take advantage of a great way to raise money Bringing your school into the 21th century Endless Opportunities Conclusion

PRIVATE EQUITY FUNDING

Transcript: HOW DO PE FUNDS WORK? EARLY SUCCESSES Finance: dominated by a few large firms making it difficult for new entrants to compete High legal and capital requirements Construction: Saturated sector Government is the major customer GROWTH PROSPECTS OF PE IN INDIA Private equity refers to a type of investment aimed at gaining significant, or even complete, control of a company in the hopes of earning a high return. Private equity funds invest in assets that either are not owned publicly or that are publicly owned but the private equity buyer plans to take private. The fund would be monitored and evaluated against projected and expected performance. Once the investment objective is met, the exit strategy would be executed. WHO WILL MANAGE THE FUND? Began in the mid 1980's First venture capital funds launched by ICICI and IFCI Commercial Banks started venture capital funds Regional venture capital funds in Andhra Pradesh and Gujarat HOW CAN A PEF WORK IN TRINIDAD AND TOBAGO OTHER STRATEGIES AGRICULTURE WHAT IS PE? HOW CAN A PEF WORK IN TRINIDAD AND TOBAGO Downstream Energy Industry attractive for PE IPO Exit Strategy Challenge of acquiring land, plant and equipment; payback period of the investment would be lengthy Institutional Investors High Net Worth Individuals GROWTH PROSPECTS OF PE IN INDIA 1. Investments are pooled from high net worth individuals and institutional investors, 2. The Fund is either incorporated as a company or a Trust, 3. The Fund may have open-ended or close-ended investments, 4. Managed by an Asset Management Company or Investment/Fund Manager, 5. The Fund typically holds diversified investments to manage risk. 6. Profits are distributed to investors in a pre-determined manner 7. Excess returns are shared between the investors and the Fund Manager. Bharti Airtel - Warbug Pincus deal: - Bharti Airtel received US $292 million from Warbug - Fund enabled Bharti to expand its business from 2 to 23 mobile telecom circles - Warbug Pincus exited by selling off its stake to Vodafone for US $848 million - Warbug secured total gains of around US$ 1.3 billion in the sell-off Attractive for PE as it is underdeveloped and can diversify the economy away from oil and gas dependence. Exit Strategy: sell-off or re-capitalisation HISTORICAL BACKGROUND FACTORS THAT DETERMINE INVESTOR WILLINGNESS TO ENTER PE MARKET EARLY DAYS OF PE IN INDIA STARTING A PRIVATE EQUITY AND VENTURE CAPITAL FUND IN TRINIDAD AND TOBAGO SECTORS FOR PE IN TRINIDAD AND TOBAGO TOURISM Owner cash out Investor buy out Merchant banking Fund of funds CAN PE BE SUCCESSFUL IN TRINIDAD AND TOBAGO Attractive for PE as the Government attempts to incentivise entry into this sector Exit Strategy: Sell-off or re-capitalisation Challenges: family owned farms, seasonal adverse weather conditions and seasonal crops Laws for venture capital funds started taking shape in the mid - 1990's In 1996 the Securities and Exchange Board of India issued the SEBI (Venture Capital Funds) Regulations 2008 Financial Crisis resulted in a slowdown in India's PE industry However, there is currently modest growth and the slowdown is merely a "bump in the road" India remains the 2nd largest Asian recipient of foreign PE after Japan WHO WILL BE THE INVESTORS? Leveraged Buyout (LBO) Growth Capital Mezzanine Capital Venture Capital Shallow Capital Market Small Economy Poor Corporate Governance Family Owned Businesses and Lack of Transparency Lack of Management Expertise GENERAL CHALLENGES IN TRINIDAD AND TOBAGO HAS IS WORKED IN DEVELOPING COUNTRIES AND WILL IT WORK IN TRINIDAD AND TOBAGO? Economic reform by the government in late 80's/early 90's 1995-2000 foreign firms such as Baring PE partners, CDC Capital, Draper International, HSBC Private Equity and Warbug Pincus entered Chris Capital and West Bridge Capital set up with a focus on IT UNFAVOURABLE SECTORS INDIA PE Industry slowed down in 2001-2003 Investment activity revived in 2004 with 6 companies going public PE industry grew from US $2 Billion to US $20 Billion by 2006 PE was the largest investor class driving equity deals in India HOW TO ALLOCATE INVESTMENTS ENERGY WHAT STRATEGIES DO PE INVESTORS USE? IPO Sell-off Re-capitalisation A diverse group of finance specialists, accountants and lawyers with multi-sector experience MONITORING AND EVALUATION OF THE FUND REAL ESTATE DEVELOPMENT Economic Activity Open Market Economy State of Capital Markets Investor Protection and Corporate Governance Regulation Taxation Entrepreneurial Culture and Deal Opportunities Management Expertise Culture Attractive for PE as the Government attempts to incentivise entry into this sector Exit Strategy: IPO, Sell-off to larger manufacturing companies or re-capitalise Challenges: most manufacturing companies in Trinidad are family owned, they may not be willing to part with control or favour transparency. MANUFACTURING GROWTH AND DEVELOPMENT OF PE IN INDIA MOST ATTRACTIVE SECTORS IN INDIA FOR PE Sector diversification Companies should be in

Now you can make any subject more engaging and memorable