Private Equity Investment News
The Great Reset Initiative is an economic recovery plan drawn up by the World Economic Forum (WEF) in response to the pandemic.
The Great Reset (book) · Stakeholder theory · You'll own nothing and be happy
The Company That Determines Our Future | Sequoia Capital Documentary
This is the story of Sequoia capital, one of Silicon Valley’s most notorious and enduring venture capital firms, investing in the likes of Apple, Cisco, WhatsApp, Airbnb, Zoom, LinkedIn, PayPal and Google among others throughout its 50-year history. It’s investments are now worth trillions of dollars in public market value. And graduates around the world would love to get a shot at working at Sequoia. Because having Sequoia Capital on your CV carries massive prestige.
The Man That Dominates Finance
He is the Secret King of Finance and Greatest Investor of all time. From humble beginnings to Billionaire, we explore the incredible life and career of Jim Simons and reveal the secrets behind his groundbreaking success
The Bank That Changed The World Forever
Chapter overview: 0:00 The Bank That Rules The World03:16 The Birth of a Legendary Banker, How to Build a Financial Giant, The Next Generation Bankers08:08 Spread Thy Wings and Fly, Goldman and Lehman Brothers, Henry Goldman Quits the Firm16:05 An Outsider Joins the Firm, The Rise and Fall of GS Trading, From Janitor to GS Senior Partner21:47 From Investment Bank to Trading Firm, Tricking Investors, The War Veteran27:13 Poached by the Government, The Risky Insider Traders, Time to Go Public?30:38 Goldman Sachs Almost Burns, A Pompous IPO, The Legend of Lloyd Blankfein35:09 The 2008 Crash, Surviving a Crash, Goldman Sachs Today
Brown researcher awarded grant to assess the spillover impact of private equity practice acquisition on health care spending, quality and access outcomes
Private equity has made one-fifth of the market effectively invisible to investors, the media, and regulators.
How Private Equity Is Investing in Health Care
Private equity (PE) firms have been buying, restructuring, and reselling health care companies, including hospitals, nursing homes, and home care services, for nearly $1 trillion in the last decade. The number of PE buyouts of physician practices has increased six-fold from 2012–2021, and at least 386 hospitals are now owned by PE firms, which is 30% of for-profit hospitals in the U.S.. PE firms have long been active in these areas, but acquisitions of physician practices have skyrocketed, especially in high-margin specialties like dermatology, urology, gastroenterology, and cardiology.
Commonwealth Fund
Private Equity's Role in Health Care - Commonwealth Fund
Nov 17, 2023 — Private equity firms have long been active in hospital, nursing home, and home care settings. But recently, acquisitions of physician practices have skyrocketed, especially in high-margin specialties like dermatology, urology, gastroenterology, and cardiology. A recent study showed that in 13 percent of metropolitan areas, a single private equity firm owns more than half of the physician market for certain specialties. Given their potential impact on the cost, quality, and access to health care in the U.S., these developments have generated considerable interest among federal and state policymakers.
Lown Institute
The rising danger of private equity in healthcare - Lown Institute
Jan 23, 2024 — Private equity (PE) acquisitions in healthcare have exploded in the past decade. The number of private equity buyouts of physician practices increased six-fold from 2012-2021. At least 386 hospitals are now owned by private equity firms, comprising 30% of for-profit hospitals in the U.S. Emerging evidence shows that the influence of private equity in healthcare demands attention. Here's what's in the latest research.
The Hill
Private equity is buying up health care, but the real problem is why doctors are selling | The Hill
Dec 21, 2023
These developments have generated considerable interest among federal and state policymakers, who are concerned about the potential impact of PE acquisitions on health care quality and prices. For example, a Harvard Medical School study found that patients are more likely to fall, get new infections, or experience other forms of harm during their stay in a hospital after it is acquired by a PE firm. Another study found that patients receiving care at PE-owned hospitals experienced a higher rate of hospital-acquired adverse events than patients receiving care at hospitals that are not PE-owned.
However, PE investment can be a good option for providers in the growth mindset because it makes it easier for them to access capital.
This is for informational purposes only. For financial advice, consult a professional.
How Private Equity Firms Widen The Income Gap | Fresh Air
The place where you buy your coffee and doughnut, your child's pre-K learning center, your loved one's nursing home, your dentist or dermatologist's office, the ER and the ambulance that took you there and your pet care provider may be owned or overseen by plunderers. That's what my guest Gretchen Morgenson writes in her new book. The plunderers she's referring to are private equity firms, PEFs, which typically buy companies, then lay off employees and cut costs, services, benefits in order to expand profits. The ultimate goal is to sell off the newly acquired company in a few years, scoring a big profit for the PEF. But it's hard to know whether a company is owned by a private equity firm because PEFs are shrouded in secrecy. Their business model, Morgenson says, widens the income gap by extracting wealth from the many to enrich the few.
So does private equity own everything?
he publicly traded company is disappearing. In 1996, about 8,000 firms were listed in the U.S. stock market. Since then, the national economy has grown by nearly $20 trillion. The population has increased by 70 million people. And yet, today, the number of American public companies stands at fewer than 4,000. How can that be?
One answer is that the private-equity industry is devouring them. When a private-equity fund buys a publicly traded company, it takes the company private—hence the name. (If the company has not yet gone public, the acquisition keeps that from happening.) This gives the fund total control, which in theory allows it to find ways to boost profits so that it can sell the company for a big payday a few years later.
Private Equity Fund vs REIT
5 reasons you shouldn't invest in a REIT:
Why Private Equity Real Estate Funds Are Superior Private REITs
1. Fees to Promote funds. Private REITs have been notorious for their high fees—and many sharing 10% with brokers. This upfront expense becomes almost impossible to recoup and offers no value to the properties or investors. In fact the Financial Industry Regulatory Authority (FINRA) now requires private REITs to provide statements to investors showing this drop immediately. This disclosure and public awareness apparently had a negative impact with the public with private REITs raising almost eighty percent less in funds.
Meanwhile, more cash is flowing into private equity real estate, like Cardone Capital. I refuse to pay any fees or commissions to brokers, reducing ALL the cost of middle men. My company uses social media crowd funding to create awareness of the deals we are investing. That way ALL of the investors dollars are invested in the properties.
2. We Buy Then You Invest. With a REIT you invest money upfront before the properties are purchased and most of the time you don’t know what property you are invested.
With the REIT the theory is you buy a diversified pool of properties, but in practice, REITs don’t start off with a pool of properties and they must start paying dividends to their investors so, REIT managers have the propensity to invest in properties to generate dividends to pay the investors.
3. Tax Advantages - With a Real Estate Investment Trust the investor is invested in a convertible stock certificate unlike the private equity investment that makes the investor a partner in the property, with the full backing of the real property. In a private equity fund you are a partner in the property rather than a holder of a piece of paper.
The tax implications (to be covered in a bit) provides a massive benefit to the investor of a private equity fund over REIT.
4) Monthly Cash Distributions. Private REITs typically pay every quarter whereas a good private equity firm who manages cash flow and is personally invested in the properties is motivated to pay investors out monthly as they are motivated to pay themselves.
As a real estate operator investing in a property I want to be paid monthly. If their is cash flow I demand we distribute monthly to the investors.
5) Private Equity Mentality vs REIT Mentality - The mindset of of private equity fund manager is about investing in real property not the day to day value of a piece of paper created by the Wall Street smarter chemist.
In REITs profits take a back seat to Fees. REITs generate most fees through transactions and the SEC warns that deals can be struck just to generate fees.
The private equity fund manager is driven by finding the right real estate assets that can produce cash flow over long periods of time and create appreciation for the fund manager and the investors. Whereas the REIT mentality is fee driven whereby they get to keep their jobs and fees are based on trades not the asset itself.
6) Taxes - One of the great benefits of real estate investing is the number of tax advantages provided through depreciation and long term capital gains.
REITs do NOT share these tax advantages with its investors and instead each year send you a 1099 form, as though you work for them.
The private equity firm passes all tax benefits on to its investors, including depreciation and capital recapitalization, while REIT payouts are taxed at an investor’s higher ordinary income rate and no depreciation deductions are passed on.
Why Private Equity SUCKS for (almost) Everyone
Almost everything we consume has been touched by private equity at some point in the value chain. Despite that, very few people even know what private equity is. In this essay, I criticize the magic sauce that private equity firms use to create “value”.
First, I talk about how this magic sauce - on dubious grounds - transfers wealth from investors, such as our pension funds, into the pockets of a few private equity partners.
Second, I talk about how private equity makes portfolio companies focus more on financial engineering and consumer exploitation, and less on actually improving their products and services.
Third, I talk about how private equity seeks to reduce market competition, right under the nose of our competition regulators.