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8 posts from Ernst & Young

EY: Private Equity Steps Up in Africa – Part II

This second part of a two-part podcast on the new face of private equity (PE) in Africa looks at  the areas of the economy most ripe for growth, and also at some business models that PE firms are pursuing. With GDP growth in Sub-Saharan Africa at 4.4% in 2012 (and a third of the countries there growing at more than 6% annually), the amount of foreign direct investment in Africa has been gaining significant momentum, and interest has spread beyond natural resources to consumers, thanks to an expanding middle class.

Knowledge@Wharton spoke with three experts to learn about the PE landscape in Africa:

Michelle Kathryn Essomé, chief executive of the African Venture Capital Association;

Michael Rogers, global deputy sector leader for private equity at EY; and

Stephen M. Sammut, senior fellow and lecturer at Wharton.

Download the edited transcript: Private Equity Steps Up in Africa – Part II

 

EY: Private Equity Steps Up in Africa -- Part I

GDP growth in Sub-Saharan Africa last year hit 4.4%, with a third of the countries in the region growing at a robust 6% annual rate. Many analysts believe this helps sets the stage for long-term growth, underpinned by a growing middle class and rising foreign investment. That, in turn, is helping to grow the services sector while reducing dependence on natural resources. Accompanying this growth is a pickup in private equity activity (PE), which offers more promise for economic development. To learn more about that, Knowledge@Wharton spoke with three PE experts in this first part of a two-part podcast:

Michelle Kathryn Essomé, chief executive of the African Venture Capital Association (AVCA);

Michael Rogers, global deputy sector leader for private equity at EY; and

Stephen M. Sammut, senior fellow and lecturer at Wharton.

 


Download the edited transcript: Private Equity Steps Up in Africa -- Part I


 

Ernst & Young: Watch for Private Equity Inflows into Pioneer Markets to Grow Further in 2013

Emerging and pioneer markets are beginning to shine in the world of private equity. Among the BRIC  countries, Brazil had a very strong year in 2012, while India and China fell back. However, other areas — from Africa to Latin America and so-called “pioneer markets” – recorded good performances last year. Knowledge@Wharton takes a closer look at how private equity will perform in 2013 in this podcast with Philip Bass, global private equity markets leader at Ernst & Young, and Stephen Sammut, a  lecturer at Wharton Entrepreneurial Programs and senior fellow at Wharton’s health care management department.

 

Download the edited transcript of: Watch for Private Equity Inflows into Pioneer Markets to Grow Further in 2013

 

 

 

Ernst & Young: Watch for Private Equity in 2013 to Mirror 2012

Private Equity held its own during 2012 in a volatile year for the world economy. Funding for the industry was up slightly, while the number of actual deals dropped a bit below 2011 levels and exits were down. With merger and acquisition activity down, there were fewer assets available. To gain more insight into how private equity performed last year, Knowledge@Wharton spoke in this podcast with Philip Bass, global private equity markets leader at Ernst & Young, and Pavel G. Savor, a Wharton Finance professor.

Download and edited copy of the transcript:

Ernst & Young: Watch for Private Equity in 2013 to Mirror 2012

 

Ernst & Young: Private Equity — Holding Steady, Readying a Growth Stage

After a lackluster first half, private equity broke out stronger in the third quarter, fueled largely by corporate America’s shedding of some large, non-core assets. Expect this trend to continue in the months ahead, with most deals in the middle market range of $50 million to $500 million. That is one of the insights to come out of a discussion between Philip Bass, global private equity markets leader at Ernst & Young LLP, and Stephen M. Sammut, a senior fellow and lecturer at Wharton, featured in this Knowledge@Wharton podcast. “Overall, the financing is there, the capital is there,” says Bass. “We do need a pick-up in the overall M&A market, and if we get that pick up, we’d expect private equity pick up as well.”

Download an edited copy of the transcript:

Ernst & Young: Private Equity — Holding Steady, Readying a Growth Stage

Ernst & Young: Private Equity Heads Down a New Path

The general approach towards private equity investments has shifted substantially, in part to conform with the tougher market conditions prevailing after the financial shocks of the last few years. Gone are the days of earning profits largely through financial engineering and rapid portfolio turnover. In their place — business transformation — where investors park their money for longer terms and generally rebuild under-performing companies. Wharton professor Stephen M. Sammut and Philip Bass, global private equity markets leader at Ernst & Young LLP, discuss the new landscape in this Knowledge@Wharton podcast. They also take a look at the similarities — and differences — between private equity specialists and entrepreneurs.

Download an edited copy of the transcript:

Ernst & Young: Private Equity Heads Down a New Path

Ernst & Young: Private Equity Buys Time with Major Refinancings

In the boom years of 2006 and 2007, European and North American private equity firms acquired significantly larger businesses, financing the deals with record levels of debt. The borrowings often consisted of four- and five-year term loans. When the credit freeze followed the banking crisis in 2008, many predicted a flood of defaults when the “wall of maturity” arrived in 2011 and 2012. Fast-forward to today and it appears as if the industry has sidestepped a crisis. Most PE firms proactively addressed the problem by paying down debt, renegotiating terms, or turning to the high-yield bond market and other sources to refinance, extending debt maturity dates by several years. But that begs a new question: How will the industry fare if economic and sovereign debt problems in Europe and the United States drag on?

Download this article: Private Equity Buys Time with Major Refinancings

Ernst & Young: Private Equity Defies the Odds with a Steady Recovery

Economies in Europe and North America are struggling to avoid another recession. Financial markets are shaky. Uncertainties overhang businesses as policy makers in both regions wrestle with nettlesome issues like government debt and regulatory models. In a troubled economic environment, it would be easy to assume the private equity industry is on the ropes. In fact, the industry continues its post-recession recovery, and private equity portfolios have outperformed public markets, a development largely attributed to the ability to create value during tough economic cycles as well as good ones.

Download Private Equity Defies the Odds with a Steady Recovery

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