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Wednesday, January 15, 2014

Private Equity Firm

In the financial world, layer upon layer of complication once stood out as the trademark of economic finesse and financial agility. This scenario once used to be viewed with scrutiny by outsiders such as the media and consumer advocates, feeling that a high degree of sophistication was required to understand the intricacies of the market with its ebbs and flows due to market fluctuations. However, even the average consumer can have a greater understanding of what it takes to not simply observe the market in action but to take part in the market in action.

One of those layers of complication would have to be private equity firms. Private equity firms are part of the highly intricate universe of finance, representing a small but powerful slice of the economic pie chart. These firms are usually pony up the dollars for mergers and acquisitions. Some function more in the sense of a venture capitalist firm by putting up the initial funding for startup companies such as mobile technology companies or online multimedia channels.

Essentially, private equity firms raise the capital necessary for operations with a return on investment (ROI) in mind. Typically, private equity firm investors will receive a return for their investment in one or more forms. One form of return on investment is a windfall payout due to the sale of the company and its assets to a private investment firm or competitive corporation. Another form of payment may come in the form of equity shares that are held in trust with the private equity firm, obtaining a minority stake or controlling interest in a company.

Private equity firms are typical made up of individuals with high net worth or foundations, pension fund managers and insurance companies. These types of partners in such ventures have the access to and depth of capital to accumulate and acquire smaller companies via buyouts and hostile takeover measures, tactics that may not work without immediate access to the capital. These types of investors do not only have deep pockets for large sum investments but they also have a heavy tolerance for the extensive negotiations and the delay of corporate transitions typically found in corporate culture due to mergers, acquisitions, turnarounds, selloffs and pivots. With such partners on board, private equity firm managers can explore numerous options for making investments that pay off well for both the firm and its partners.

One such example is the Blackstone Advisory Partners Limited Partnership (LP). John Studzinski Blackstone Advisory Partners' Senior Managing Director and Global Head has previous experience with HSBC Bank and Morgan Stanley & Company. Studzinski brings a plethora of experience to the table, serving as the Head of the Mergers and Acquisitions Advisory Unit of Blackstone. His previous experience in building and maintaining relationships with corporate clients on a global scale make Studzinski an appropriate leader for the helm at Blackstone Advisory Partners LP, an international financial firm with the ability to operate and manage companies on almost every continent of the globe.

With a global corporate climate that is bubbling with new innovations in biotechnology and Web-based solutions, private equity firms are among the movers and shakers of new economy. These firms are poised to take advantage of the numerous opportunities that will arise within these and other sectors of the market.