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| News & Scoreboards |
10 Questions For Your Private Banker - 10/05
10/01/2005
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Will the slightly revalued yuan give a 2.1 percent
boost to the returns on my Chinese investment fund’s yuan-denominated assets,
and if so, can the fund managers use that (and the effect of any further
currency appreciation) as credit toward its minimum return bogey for the year?
Can they take 10 (or 20) percent of the gain?
Strategic buyers are once
again giving private equity funds a run for their money in the middle-market
acquisition arena. Leading companies such as Home Depot are retooling their
corporate development teams to better compete with cash-bloated financial
sponsors for attractive assets. Is this trend a problem for my middle-market
private equity funds, or will they still find attractive targets at reasonable
valuations?
Venture capital fund-raising hit a five-year high in the second
quarter, but the pace and volume of VC investments continued to slide. VC funds
raised $6.1 billion but only invested $5.39 billion—continuing a downward trend
in deal flow and size, according to data from Thomson Venture Economics and Dow
Jones’ VentureOne subsidiary. What does this mean for my VC investments? For my
ability to obtain VC financing for my own company?
Private equity fund
managers fell off the wagon in July after three months of relative sobriety,
during which they apparently foreswore company-crippling leveraged recaps in
response to worries from the debt markets and ratings agencies. A new spate of
dividend recaps were in the pipeline as Worth went to press. Are any of my funds
relying on this take-the-money-and-run strategy to enhance their
returns?
Silver bulls will soon have a new way to invest in the metal.
Barclays Global Investors plans to roll out an exchange-traded fund that will
track the price of silver. But the metal is often seen as less attractive as a
straight commodity play, or as a currency hedge, than gold—for which there are
at least two ETF vehicles. Will the silver ETF be of any use?
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