General PE Flashcards
Why PEI Group?
Good Mix of Companies and Type of Work Conducted
- Utility - Historically Defensive Position, Large Cap M&A, Dividend Analysis, Cost of Capital Analysis, Board Books
- Alternative Energy - M&A, Restructuring, Pipe Financing
- Infrastructure - Asset Acquisitions / Sales, Greenfield Projects, Investment Funds
“Group is interesting because everything is tied to commodities and government regulation / policy
- Utilities very much effected by state government agencies (Regulatory risk is the price to pay for the relative stability of investing in public monopolies)
- Alternative Energy effected by government policies / incentives”
- Knowledge that society will forever need massive invesment in both transportation and energy. It is in the self-interest of governmetns to treat capital providers in a manner that will ensure the continued flow of funds to essential projects
Why Lazard?
Leading Global independent Advisor (M&A, Restructuring, Sovereign Advisory) - Advisory Revenue amongst largest firms, No balance sheet to rely on (rely on creativity and relationships to win and execute deals)
Global network - 1000 bankers in 42 cities and 27 countries, 50% of LTM deals were cross-border
People and very strong track record - part of our culture is to understand the governmental influence (Ron Bloom, Vernon Jordan, Felix Rohatyn)
Why Private Equity?
- Attracted to dynamics of business; long term play, ability to fully think through investment decisions, access tom anagement and the ability to shape future of company while earning a solid return; See self as investor Long Term
- Job responsibilities match my personality and past experiences well; thrive in fast paced, intensve environment, winning/executing/monitoring deals is very exciting
- PE represents the pinnacle of investing - turning around whole companies, finding value where there doesn’t appear to be any
- Good opportunity to analyze business plans, operational expertise working on ground
- PE is nuts and bolts of Finance, takes a longer term view where you focus on building value and building a company
Why Middle Market?
” - Focus on smaller companies where returns are typically generated by teh growth of business, firms tend to pay less for companies and use significantly less leverage
- Interested in not just understanding CF, but also more exposure to how busienss operates
- Don’t want a 3rd year in banking, mega fund work experience seems limited and similar to bankign
- Enjoy smaller groups / teams
- More to do over life of a deal at MM
- Learn best by Hands-on experience
- Middle Market companies drive much of macroeconomic growth - invest based on expected growth of company as well
- top firms are too hierchical and institutionalized”
+ Middle market deals maintained their dominance, making up nearly 80% of capital invested over last 3 years (defined as less than 1 bn)
Why Growth Equity?
- Interest in Company building, partner with Entrepreneur, believe in industry / career, intangibles
- Sourcing is one component I would not mind
- Investment based on earnings growth instead of leveraging up
What did you learn from Rugby/Athletics?
- Life Lessons - perspective, discipline, leadership - a methodology to achieve: Make a plan, put it into action, Make adjustments when needed and see it through to achieve success
- Fell in love with its strategy, physicality and teamwork that takes place on pitch - a portfolio of body types working together in concert
- Rugby taught me how to rise to challenge and opportunity - that if you invest energy and commitment into any goal, you will make a positive impact
- Rugby forces you to be transparent with yourself - can’t avoid the fact that wou missed a tackel or that you’re not as fast as the guy next to you -
you either decide that you are going to practice to improve or you are going toa ccept that you are not as good or talented ast he person next to you - Athletics runs a huge parallel to intense careers such as PE - Rugby encourages remarkable teamwork towards a common goal
Why Komen?
- My approach is to relieve pain rather than spread joy - help make the world a better place and help disadvantaged make their way towards the american dream
- Donate my time in memory of and as a way of becoming closer to my mother
- Want career to be a model of multifaceted, externally engaging professional life. A broad range of involvements - especially in nonprofits and politics will make life more varied and interesting
- Reminder of the adversity I have overcome and a way of giving back and developing professionally in an alternate environment
- We award grants to a wide variety of breast health programs in NY region that provide top quality services to at-risk women (75% grants, 25% research)
Who is your favorite Investor?
Warren Buffet
+ Investment style of discipline, patience and value - has outperformed the market for decades
+ Does not engage in un-friendly takeovers, looks for businesses with favorable and durable economic and competitive characteristics to hold for the long term
+ In ST, market is a voting machine, but in LT it is a weighing machine = Operating results, Not Price determines Success
