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TIP663: The Truth About Private Equity w/ Ted Seides
Sep 27, 2024
Ted Seides, former president of Protege Partners and author of "Private Equity Deals," dives into the explosive growth of private equity, now a $6 trillion powerhouse. He discusses why it has outperformed public equities and the shifting perceptions about its impact on jobs. Ted highlights strategic decisions in notable deals like Apollo's acquisition of Yahoo and KPS's revival of TaylorMade. He also explores how interest rate hikes are reshaping the landscape and who should consider adding private equity to their portfolios.
01:07:27
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Quick takeaways
- Private equity has transformed from a niche industry to a dominant force in the global economy, now valued over $6 trillion.
- The ability to directly manage acquired companies allows private equity firms to implement strategic changes and drive profitability improvements effectively.
Deep dives
The Growth of Private Equity
Private equity has experienced significant growth over the past 20 to 30 years, evolving from a niche industry to a major player in the global economy. Initially, private equity was restricted to a small group of leading institutions, focusing primarily on acquiring private companies. However, the financial crisis catalyzed a shift as institutions sought higher returns, leading to increased capital flow into private equity. As interest rates dropped and traditional fixed-income investments underperformed, more institutions began allocating a larger portion of their portfolios to private equity, recognizing its ability to provide sustained returns.
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