The hottest Private Equity Substack posts right now

And their main takeaways
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What You Can Learn From The Investment Committee Process

DeFi Education • 679 implied HN points • 22 Mar 22
💰 Finance Private Equity
  1. Having a clear investment process is important. Documenting what you do helps you improve and grow over time.
  2. Teamwork can enhance your investment decisions. Consider gathering a small group to discuss and evaluate investment ideas together.
  3. Monitoring your investments is crucial. Don't just set it and forget it; keep an eye on your assets and know when to sell or change your strategy.

Competitive Specialization in Founder Support

Equal Ventures • 79 implied HN points • 05 Dec 23
💼 Business Private Equity
  1. Venture firms often lack competitive specialization, unlike private equity which frequently employs this strategy to allow various team members with complementary specialties to work together on deals.
  2. Competitive specialization within firms, like having dedicated industry leads, can empower teams to perform at their best, focus on their strengths, and deliver exceptional value to founders.
  3. Empowering team members to specialize in their unique skill sets and roles can lead to innovative approaches, better outcomes in deals, and overall team growth and satisfaction.

Top Links 384 Gaza's famine, Malaysia's currency under pressure, PE impasse, pickles for millenials and Hjalmar Schacht's host in Indonesia.

Chartbook • 300 implied HN points • 11 Mar 24
🌍 World Politics Private Equity
  1. The post discusses Gaza's famine, Malaysia's currency challenges, private equity dilemmas, pickles for millennials, and Hjalmar Schacht's visit to Indonesia.
  2. The content includes great links, readings, and images from the Chartbook Newsletter by Adam Tooze.
  3. To access the full post and more content like this, readers must be paid subscribers to the newsletter.

How we built a business out of recession - final chapter 54 - the after party

The ZIPster • 44 implied HN points • 11 Jul 25
💼 Business Private Equity
  1. CitNOW was started from a kitchen table and eventually sold, highlighting how businesses can grow even during tough times. It shows that dedication and hard work can pay off.
  2. After selling the company, the founders experienced a mix of relief and uncertainty as the new owners didn't communicate much about the company's future. This emphasizes the importance of support and transparency in business.
  3. The founders moved on to new ventures and enjoyed personal growth after selling CitNOW. This shows that life can change positively after big transitions.
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"AI For PE" Startups Are Missing the Point

Fully Distributed by Ori Eldarov • 78 implied HN points • 04 Aug 23
💼 Business Private Equity
  1. The real value in AI for Private Equity is in enhancing portfolio companies, not just investors.
  2. Most AI solutions for Private Equity focusing on automating low-impact tasks may not significantly boost revenues for funds.
  3. The opportunity in AI for Private Equity lies in driving operational efficiencies at the portfolio company level through workflow automation and improved analytics.

2024 Predictions

The Polymerist • 232 implied HN points • 09 Jan 24
💼 Business Private Equity
  1. Artificial Intelligence will reshape the Chemical Industry.
  2. Private Equity operators in the Chemical Industry need to focus on rebuilding companies and going digital.
  3. Predictions for 2024 involve leveraging AI and restructuring business strategies.

Private Equity Needs To Up Their Game

The Polymerist • 199 implied HN points • 26 Jan 24
💼 Business Private Equity
  1. Private equity firms need to develop new strategies in a higher interest rate environment.
  2. Constant restructuring in chemical businesses can lead to talented employees leaving and burnout.
  3. Implementing digital frameworks can help onboard new employees effectively and improve knowledge retention.

Late-Cycle Investment Theory: 10 Recent Snapshots

European Straits • 23 implied HN points • 05 Jul 25
💰 Finance Private Equity
  1. AI is making existing systems more efficient, rather than creating something entirely new. It helps industries use technology better, especially in areas that used to resist software.
  2. The push for American manufacturing jobs struggles against economic realities. Even with a desire to bring back factories, the strong dollar and global pressures make it hard to compete with countries like China.
  3. Private equity is changing its approach by buying insurance companies. This newer strategy helps them secure stable funding, but it also concentrates risks and could lead to financial problems.

VC/PE Exit Woes + A Decade of SaaS Data

Bigfoot Capital • 39 implied HN points • 25 Oct 23
💼 Business Private Equity
  1. VC and PE firms facing challenges to exit investments due to lack of primary liquidity
  2. PE deals show increased activity in 2023, with many acquisitions in sub-$25M range and in Seed/Series A stages
  3. SaaS Historical Benchmarks Report reveals expansion revenue growth and challenges for sales reps in hitting quotas

Inside the Private Equity Options Factory

Lewis Enterprises • 19 implied HN points • 02 Feb 24
💰 Finance Private Equity
  1. GP Stakes investing is a late-cycle phenomenon that uses structures to enhance private equity outcomes.
  2. Financial transactions are often abstractions used for hedging, speculating, or leveraging capital.
  3. Private equity has evolved to create exotic forms of leverage and financial assets, impacting capital allocation.

The Downfall of Red Lobster. Private Equity and the Complexities of the Restaurant Industry

Gad’s Newsletter • 44 implied HN points • 06 Jan 25
💼 Business Private Equity
  1. Red Lobster's decline came from a mix of poor decisions and weaknesses in management. They struggled with high debt and not enough investment in improving their business.
  2. The chain faced tough competition as more people preferred faster dining options. This change in consumer taste hurt Red Lobster, which relied on longer dining experiences.
  3. In contrast, Texas Roadhouse succeeded by focusing on strong leadership and customer satisfaction. They managed their growth wisely and kept their menu appealing to customers.

Dumb Money Squared

The Future, Now and Then • 113 implied HN points • 29 Jan 24
💰 Finance Private Equity
  1. Different generations have their own moments of 'we're democratizing finance'
  2. Retail traders bring more money into the stock-gambling market under the guise of democratizing finance
  3. Be cautious of celebrating retail traders' victories as they may inadvertently strengthen the financial system over time

Apollo's Web

Net Interest • 12 implied HN points • 18 Jul 25
💰 Finance Private Equity
  1. Lockheed Martin transferred a large amount of pension obligations to Athene to reduce financial risk and focus on its main business.
  2. Athene, backed by Apollo Global Management, has rapidly grown its pension risk transfer business, sparking concerns about the safety of these arrangements for individuals.
  3. Some employees are worried that private equity's involvement in insurance may lead to higher risks and fewer protections for pension holders.

"He had relaxed for one day. And he had lost"

Kvetch • 43 implied HN points • 02 Nov 24
💼 Business Private Equity
  1. Winning doesn't mean you're safe; you have to keep working to stay ahead. A single misstep can lead to losing everything.
  2. In a competitive environment, confidence can be dangerous. Overestimating your position might let opponents take advantage.
  3. Timing and knowledge are crucial in business deals. A well-timed offer can change the game, just like knowing when to reveal important information in politics.

The End of Private Equity's Golden Age

European Straits • 12 implied HN points • 11 Jun 25
💰 Finance Private Equity
  1. Private equity is facing a big change as key investors, like Yale and Harvard, are selling off their holdings. This shift raises questions about whether private equity is just going through another cycle or if there are deeper issues at play.
  2. Today, private equity is struggling to exit investments, meaning firms can't show returns, which makes it hard to attract new money. This cycle of problems is creating a 'velocity crisis' that could hurt the industry overall.
  3. The problems in private equity suggest that the strategies that worked for decades might not be effective anymore. Firms may need to rethink their models or focus on fewer, stronger investments to survive.

Global LP Perspectives in a Changing Market

Tippets by Taps • 10 implied HN points • 24 Jun 25
💼 Business Private Equity
  1. Liquidity is a big issue for investors everywhere. They are waiting for returns, especially in regions like Australia where companies like Canva are under a lot of pressure to go public.
  2. AI is seen as a huge opportunity by all investors. They feel they can't miss out on the companies shaping the future, even if they are frustrated by the current lack of liquidity.
  3. The US, especially Silicon Valley, is still the main hub for tech and AI innovation. Many investors want to get involved there while waiting for their local markets to grow.

Financing the AI Boom

Net Interest • 17 implied HN points • 31 Jan 25
💼 Business Private Equity
  1. The demand for data centers is skyrocketing due to growth in AI and cloud services. Companies and investors are putting big money into building these facilities to meet future needs.
  2. Major tech companies like Meta and Microsoft are planning to invest heavily in AI infrastructure this year. This indicates that there's a big race to develop the necessary resources for AI technology.
  3. Recent developments suggest that new AI models can be produced with less infrastructure than before. This raises questions about the future profitability of data center companies, as they might not be as essential to AI advancements.

Hard Assets

Net Interest • 54 implied HN points • 19 Jan 24
💰 Finance Private Equity
  1. Sydney Airport is a profitable asset with stable earnings and unique market position
  2. Infrastructure investing is a rapidly growing market opportunity
  3. Large asset owners are increasing their allocations to the infrastructure asset class

Startups: The Door Is Closing

European Straits • 46 implied HN points • 06 Sep 23
💼 Business Private Equity
  1. The era of startups may be coming to an end, urging entrepreneurs to consider new strategies.
  2. Factors like shifting demographics, capital scarcity, and deglobalization are influencing the decline in innovation.
  3. Venture capital is evolving, with a potential reversion back to its original niche, impacting the fate of startups.

SPACs a.k.a "Vegas Wedding Chapel of liquidity events"

Turnaround • 59 implied HN points • 25 Jan 21
💼 Business Private Equity
  1. Startups are increasingly staying private longer due to the availability of private money and growth of Venture Capital and Private Equity.
  2. SPACs, or Special Purpose Acquisition Companies, offer more certainty and speed for companies going public compared to traditional IPOs.
  3. SPACs may be seen as more expensive than IPOs due to higher fees, but have evolved and come under greater scrutiny by the SEC.

5 Takeaways from CalSTRS’ Private Equity Performance Report

East Wind • 7 implied HN points • 14 Jan 25
💰 Finance Private Equity
  1. Traditional buyout strategies are the main focus in private market investing, making up the majority of capital deployed. This means investors often look for large returns by channeling money into these proven strategies.
  2. Private equity investments take a long time to provide returns, sometimes over a decade. Many firms are staying private longer, which can slow down how quickly capital returns to investors.
  3. Venture capital investments have seen a significant decrease lately, with much lower capital contribution compared to previous years. This change highlights a shift in the market, making it harder for funds to generate strong returns.

Tony Robbins’ Favorite Asset Class

Net Interest • 18 implied HN points • 01 Mar 24
💰 Finance Private Equity
  1. Tony Robbins has invested in over 100 privately held businesses with combined sales over $7 billion, leveraging his brand to immense success.
  2. Robbins emphasized the concept of 'GP stakes', where investors buy minority positions in asset management firms, such as what he did with Blue Owl through CAZ Investments.
  3. The GP stakes business model focuses on buying into asset management firms and can be highly lucrative, providing exposure to various private asset management firms.

When looking at private investments, the past is prologue

Klement on Investing • 2 implied HN points • 24 Jun 25
💰 Finance Private Equity
  1. Private investments seem safer because they offer smooth returns, but their true risks might be hidden. Investors need to be careful and look beyond the surface when evaluating these assets.
  2. The way private equity funds show their investment valuations can be misleading. If they only show positive changes and hide the bad news, it can trick investors about how healthy the investments really are.
  3. Small changes in investment valuations can signal much bigger problems later on. Investors should pay attention to valuation updates to predict possible losses in the future.

2022 M&A in Cybersecurity

The Security Industry • 15 implied HN points • 02 Apr 23
🕹 Technology Private Equity
  1. In 2022, the cybersecurity industry saw 332 acquisitions, with the largest deal being VMware acquired by Broadcom for $60 billion.
  2. Most of the acquisitions in 2022 were strategic, where one vendor acquired another, like Google buying Mandiant.
  3. Special Purpose Acquisition Corps (SPACs) were used for acquiring cybersecurity companies, with notable large deals taking advantage of lower valuations.

Private equity: Resilient, but not immune

Klement on Investing • 1 implied HN point • 18 Feb 25
💰 Finance Private Equity
  1. Private equity and venture capital can bounce back from economic shocks over time. If you hold these investments long enough, you are likely to recover any losses.
  2. Shocks in stock and bond markets can affect private equity returns more than investors might think. During a crisis, the reactions are often quick and correlated with these markets.
  3. Despite their resilience, private equity is not totally safe. Investors should expect some volatility during tough economic times, but patience can lead to better long-term returns.

Energising energy producers

Klement on Investing • 1 implied HN point • 04 Nov 24
💼 Business Private Equity
  1. Competition is important for businesses because it helps them become more efficient and often leads to lower prices for customers. By bringing in new companies, industries can see positive changes and improvements.
  2. Traditionally, utility companies lacked innovation and often prioritized dividends over customer service. This has led to underinvestment in infrastructure, resulting in higher costs for consumers.
  3. Private equity and institutional investors have recently started buying utility companies, leading to better efficiency and management. These newcomers are able to sell electricity at higher prices by managing their output more flexibly, benefiting both investors and consumers.

Managing private equity portfolios

Klement on Investing • 2 implied HN points • 13 Feb 24
💰 Finance Private Equity
  1. Private equity managers have unique challenges in balancing portfolio concentration for high returns and diversification to manage risk.
  2. Private equity portfolio characteristics differ from those of listed equity funds, with smaller, riskier holdings often generating the most alpha.
  3. Performance in private equity is less about individual deals and more about portfolio construction, where fund manager skill plays a significant role.

Leveraged Buyouts

Musings on Markets • 0 implied HN points • 07 Oct 09
💰 Finance Private Equity
  1. Leveraged buyouts involve using a mix of debt and equity to boost a company's value, which can also affect taxpayers.
  2. Control is important; poor management can be turned around by changing investment and dividend policies.
  3. Going private can help companies make tough decisions without worrying about short-term stockholder pressures.

The Facebook Valuation!

Musings on Markets • 0 implied HN points • 05 Jan 11
💼 Business Private Equity
  1. You can sometimes estimate a company's value from a single investment, but it's tricky since other benefits might affect the real value.
  2. Some companies, like Facebook, choose to stay private to avoid public scrutiny and to keep certain details secret, which can have its advantages.
  3. Valuing a private company like Facebook requires access to financial data and future projections, but many factors can make this complex and uncertain.

Private Equity: Hero or Villain?

Musings on Markets • 0 implied HN points • 14 Jan 12
💰 Finance Private Equity
  1. Private equity investors buy shares in companies to make changes and improve their performance. They focus on companies that need better management, rather than just waiting for their stocks to rise.
  2. When private equity groups take over, they often push for changes like selling off parts of the company and increasing dividends for shareholders. This can lead to mixed results; some companies thrive, while others may struggle.
  3. Critics argue private equity creates job losses, but the idea is that making companies more profitable can eventually lead to new jobs and growth. It’s about improving value for shareholders and customers.

Private Equity: Too disruptive or not disruptive enough?

Musings on Markets • 0 implied HN points • 18 Oct 12
💼 Business Private Equity
  1. Private equity (PE) can help fix poorly managed and undervalued companies. PE investors target these firms to improve their performance and governance.
  2. The performance of PE investors varies a lot; while some do very well, others do poorly. This means that not all PE firms are equally successful in generating returns.
  3. Critics of PE argue that it can lead to job losses, but the evidence is mixed. While jobs at targeted firms may drop, new jobs can also emerge in other businesses they invest in.

Valuing Young Companies

Musings on Markets • 0 implied HN points • 19 Jun 09
💼 Business Private Equity
  1. Young companies often have limited data because they are just starting out. This makes it hard to accurately value them.
  2. These companies usually don't bring in much money yet, which can lead to big losses as they try to get established.
  3. Investors need to be careful with their money because many young companies fail. Only a small percentage survive long-term.

Michael Dell's Conflicted Buyout

Musings on Markets • 0 implied HN points • 12 Feb 13
💰 Finance Private Equity
  1. Management buyouts can create conflicts of interest, especially when managers are involved in both selling and buying their own company. This can lead to questions about whether they really represent the best interests of shareholders.
  2. To justify their buyout offers, managers may use arguments that might not fairly reflect the company's true value. They often hire investment banks for appraisals, but these banks might be biased because they benefit from the deal going through.
  3. Investors have different choices when facing a buyout offer. They can simply accept the offer, express their frustration, or try to rally support from other shareholders to negotiate a better deal.

Blackstone's Woes: Some thoughts on Private Equity

Musings on Markets • 0 implied HN points • 06 Nov 08
💰 Finance Private Equity
  1. Even experienced investors can make big mistakes when they get swept up in trends. It's important to stay grounded and think critically about decisions.
  2. Basic financial principles matter, and ignoring them can lead to serious problems. If a business can't generate cash right now, it's risky to take on debt.
  3. Private equity firms can face the same issues as regular investors, they just have more money involved. A downturn can hurt them just as much.

How to get better at pitching fund selectors

Fund Marketer • 0 implied HN points • 19 Jun 24
💰 Finance Private Equity
  1. Using Generative AI can save a lot of time when creating drafts for legal documents. Lawyers at Ashurst found they could save up to 80% of the time on some tasks.
  2. The accuracy of AI-generated content can be surprisingly high compared to human output, but it still requires careful review. Lawyers found it hard to tell whether some AI outputs were made by a human or the AI.
  3. When pitching to fund selectors, having a clear story and understanding your audience is key. Many pitch decks fail because they don't address who their target customers are or why now is the right time for their proposal.

Private equity might be the hero Jeremy Hunt is looking for

Fund Marketer • 0 implied HN points • 20 Mar 24
💰 Finance Private Equity
  1. The UK is struggling to attract more companies for stock listings, with many businesses opting to go private or list in the US instead. This means the government needs to find ways to make UK listings more appealing.
  2. Private equity firms are currently sitting on many unsold companies and need to sell some off to make way for new investments. This situation could create opportunities for fresh listings in London.
  3. There's a rise in private equity interest as firms look to offload poorly performing companies. This could help provide the market with new companies to list and boost UK stock market activity.