For years, private equity firms treated the middle market, firms with $50 to $500 million in revenue, as a goldmine. Smaller, family-owned businesses were easier to understand, had less competition from mega-funds, and required relatively simple operational changes to generate outsized returns. It seemed like an ideal formula. Then reality hit. Middle-market PE deals are […]
Tag: Private Equity
During one of my internships I worked on a due diligence project, which involved conducting market research to help a PE firm decide whether to acquire a major stake in a joint venture owned by one of the largest telecom companies in Asia. It was a very interesting experience, so in this post I will […]
This post is a collaboration between BROSO™ and Tom Spencer, and was originally posted on Truth Has No Temperature. Why is the Australian venture capital industry almost non-existent and irrelevant on a global scale? Three reasons: A massive misallocation of capital, particularly when it comes to Australia’s $1.7 trillion superannuation bolstered capital pool, the fourth largest capital pool in […]
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Bank Bailouts and other Moral Hazards
In the previous post on Moral Hazard, we learnt that Moral Hazard refers to any situation where a person is not fully responsible for the consequences of their actions. As a result, they may take greater risks than they would have otherwise. Here are 6 examples of situations where Moral Hazards arise in practice. 1. Insurance […]