Book description
The dynamic environment of investment banks, hedge funds, and private equity firms comes to life in David Stowell’s introduction to the ways they challenge and sustain each other. Capturing their reshaped business plans in the wake of the 2007-2009 global meltdown, his book reveals their key functions, compensation systems, unique roles in wealth creation and risk management, and epic battles for investor funds and corporate influence. Its combination of perspectives—drawn from his industry and academic backgrounds—delivers insights that illuminate the post-2009 reinvention and acclimation processes. Through a broad view of the ways these financial institutions affect corporations, governments, and individuals, Professor Stowell shows us how and why they will continue to project their power and influence.
- Emphasizes the needs for capital, sources of capital, and the process of getting capital to those who need it.
- Integrates into the chapters ten cases about recent transactions, along with case notes and questions
- Accompanies cases with spreadsheets for readers to create their own analytical frameworks and consider choices and opportunities.
Table of contents
- Cover image
- Title page
- Table of Contents
- Copyright
- Dedication
- Preface
- Acknowledgments
- 1. Overview of Investment Banking
- 2. Regulation of the Securities Industry
- 3. Financings
-
4. Mergers and Acquisitions
- The Core of M&A
- Creating Value
- Strategic Rationale
- Synergies and Control Premium
- Credit Ratings and Acquisition Currency
- Regulatory Considerations
- Social and Constituent Considerations
- Role of Investment Bankers
- Other M&A Participants
- Fairness Opinion
- Acquisitions
- Breakup Fee
- Alternative Sale Processes
- Cross-Border Transactions
- Tax-Free Reorganizations
- Corporate Restructurings
- Takeover Defenses
- Risk Arbitrage
- Valuation
- 5. Trading
- 6. Asset Management, Wealth Management, and Research
- 7. Credit Rating Agencies, Exchanges, and Clearing and Settlement
- 8. International Banking
- 9. Convertible Securities and Wall Street Innovation
- 10. Investment Banking Careers, Opportunities, and Issues
-
11. Overview of Hedge Funds
- Leverage
- Growth
- Composition of Investors
- Industry Concentration
- Performance
- Slowdown during 2008
- Market Liquidity and Efficiency
- Financial Innovation
- Illiquid Investments
- Lock-Ups, Gates, and Side Pockets
- Comparison with Private Equity Funds and Mutual Funds
- High-Water Marks and Hurdle Rates
- Public Offerings
- Fund of Funds
- 12. Hedge Fund Investment Strategies
-
13. Shareholder Activism and Impact on Corporations
- Shareholder-Centric versus Director-Centric Corporate Governance
- Activist Hedge Fund Performance
- Activist Hedge Fund Accumulation Strategies
- CSX versus TCI
- Changing Rules That Favor Activists
- Daniel Loeb and 13D Letters
- Carl Icahn versus Yahoo!
- Bill Ackman versus McDonald's, Wendy's, Ceridian, Target, and MBIA
- Summary
- 14. Risk, Regulation, and Organizational Structure
- 15. Hedge Fund Performance and Issues
-
16. Overview of Private Equity
- Characteristics of a Private Equity Transaction
- Target Companies for Private Equity Transactions
- Private Equity Transaction Participants
- Structure of a Private Equity Fund
- Capitalization of a Private Equity Transaction
- Assets under Management
- History
- Financing Bridges
- Covenant-Lite Loans and PIK Toggles
- Club Transactions and Stub Equity
- Teaming up with Management
- Private Investment in Public Equities
- Leveraged Recapitalizations
- Secondary Markets for Private Equity
- Funds of Funds
- Private Equity Goes Public
- Impact of Financial Services Meltdown on Private Equity
- 17. LBO Financial Model
-
18. Private Equity Impact on Corporations
- Private Equity–Owned Companies: Management Practices and Productivity
- Private Equity–Owned Company Failures
- Scorecard during 2008
- Private Equity Purchase Commitment Failures
- Private Equity Portfolio Companies Purchased during 2006 and 2007
- Private Equity Value Proposition for Corporations
- Corporate Rationale for Completing Private Equity Transactions
- Private Equity as an Alternative Model of Corporate Governance
- Private Equity Influence on Companies
- 19. Organization, Compensation, Regulation, and Limited Partners
-
20. Private Equity Issues and Opportunities
- PIPEs
- Equity Buyouts
- Distressed Assets
- M&A Advisory
- Capital Markets Activity
- Hedge Fund and Real Estate Investments
- 2008 Losses and Future Expectations
- Boom and Bust Cycles
- Annex Funds
- Limited Partner Pullbacks
- Risk Factors
- Asian Private Equity Activities
- European Private Equity
- Strategic Alliances
- Private Equity IPOs
- Focus on Portfolio Management
- Comparison of Private Equity Firms
- Profile of The Carlyle Group
- Future Issues and Opportunities
- The New Landscape
- Investment Banking in 2008 (A): Rise and Fall of the Bear
- Investment Banking in 2008 (B): A Brave New World
- Freeport-McMoRan: Financing an Acquisition
- The Best Deal Gillette Could Get?: Proctor & Gamble's Acquisition of Gillette
- A Tale of Two Hedge Funds: Magnetar and Peloton
-
Kmart, Sears, and ESL: How a Hedge Fund Became One of the World's Largest Retailers
- The Unusual Weekend
- Flash Forward: November 2004
- The Rise and Fall of Kmart
- Bankruptcy and Inefficient Financial Markets
- Financial Buyers versus Strategic Buyers
- Private Equity
- Hedge Funds
- ESL: The Hedge Fund That Could Not Be Categorized
- 2002–2003 Decision: Should ESL Seek to Gain Control of Kmart during Bankruptcy?
- Lampert's Kmart Play
- November 2004 Decision: Should Kmart (under ESL's Control) Acquire Sears?
-
McDonald's, Wendy's, and Hedge Funds: Hamburger Hedging?: Hedge Fund Activism and Its Impact on Corporate Governance
- Growing Hedge Fund Activism
- A Tale of Two Activists: Carl Icahn and William Ackman
- Pershing Square's Initial Involvement: Wendy's and McDonald's
- McDonald's Management and Franchisees Respond
- Rating Agency Concern
- Unlocking McDonald's Real Estate Value
- Aftermath of McDonald's Rejection
- The Truce
- Retrospective
- Porsche, Volkswagen, and CSX: Cars, Trains, and Derivatives
-
The Toys “R” Us LBO
- Case Focus
- Emergence of Club Deals in a Maturing Industry
- Dividends and Fees Paid to Private Equity Firms
- U.S. Retail Toy Industry in 2005
- European Retail Toy Industry
- Infant, Toddler, and Preschool Market
- Overview of Toys “R” Us
- Challenging Times for Toys “R” Us
- Toys “R” Us Strategic Review and Sale
- The Toys “R” Us Club
- The Assignment
- Cerberus and the U.S. Auto Industry
- Index
Product information
- Title: Investment Banks, Hedge Funds, and Private Equity, 2nd Edition
- Author(s):
- Release date: September 2012
- Publisher(s): Academic Press
- ISBN: 9780124046320
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