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PE4FAMS Private Equity for Families Blog

The Private Equity for Families Blog

Insight for those who want to include private equity or direct investment in privately-held businesses in their portfolios. The opinions expressed in the PE4Fams blog are those of  Rob McCreary and not necessarily those of CapitalWorks or its employees.

Robert McCreary CapitalWorks private equity Cleveland

$30 Trillion of Debt Doesn’t Worry Anyone

Every year the US Government releases its Annual Report to its citizens. It is always interesting to see where we stand. Chart 4 below shows a 2016 balance sheet for the U.S. government. The assets are $3.4 trillion comprised mostly of student loans. The liabilities are $22.75 trillion comprised

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An Obituary for Democracy and Capitalism

The Economist has an interesting journalistic twist. Several of its opinion columns like Schumpeter, Buttonwood and Bagehot are named for inflexion point economists, political theorists or iconic events. For example, Schumpeter is named for Joseph Schumpeter who published a 1942 best-seller called “Capitalism, Socialism and Democracy”. Mr. Schumpeter was

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Why Do You Want Your Fridge To Be Smart?

In a nation of chronically obese and out of shape citizens why does anyone want a smart refrigerator? Based on my superficial and uneducated experience with other smart devices like cellphones, autos, iPads, computers, and Fitbits I have formed an opinion that smart devices are way too needy. Take

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Don’t Let Your Business Get IPA’ed

With a title like this you are probably thinking PE4Fams committed the cardinal sin of good journalism, a typo in the headline. Not so fast my proofreading friends, this blog is about disruptive technologies and the pervasive onslaught of India Pale Ales. The Economist Editorial staff produced a really

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A New Year for Private Equity

Turning the page on a great year is always bittersweet. While the future is exciting, the status quo is also mighty inviting. For private equity, 2016 will go down with Dickensian hyperbole as “The Best of Times”. Our business model turns on six or seven main ingredients, the absence

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Build On What Unites Us

You can get a pulse of America by paying attention to the TV shows acceptable for hospital waiting rooms where comfort, tranquility and hope are cultivated among those patients and family waiting for judgment or healing. Based on my recent pre election waiting room experiences there are only 4

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“The Economist” Weighs In On Private Equity

It seems like the whole world is now fascinated by a business model that has been around for more than 40 years. In the October 22nd issue of The Economist an editorial panel took a look at Private Equity. Entitled “The Barbarian Establishment” the article is mostly complimentary: “Private

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Winners, Losers and Reigned Out

The 2016 presidential election results were surprising and the aftermath is sure to bring more surprises. There appears to be premature celebration in many camps as business interprets the Trump victory in a most positive light. There are, however, a few bedrock changes coming that will set a business,

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Indians in Six Because…

Writing a blog about The World Series when your home team is a participant would seem as natural as blonde hair at a hair dressers convention. But I was resisting (jinx concerns) until I read a column by Jared Diamond in Monday’s edition of the Wall Street Journal “How

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McKinsey Report Applauds PE Model

One of our portfolio company CEOs sent me a really interesting comparison of the PE business model with the public company business model. “What private-equity strategy planners can teach public companies” By Matt Fitzpatrick, Karl Keliner, and Ron Williams (Link Here) is a ringing endorsement for several value creation

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Honey, I Just LBO’ed the SPX

On the back of the predicted sixth consecutive quarterly decline in the earnings per share of the S&P 500 I decided to see how we would have done if we had done a leveraged buyout of the S&P 500 in 2014 and then again in 2015. I did two

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Governmentis Interruptus

The President announced last week that it is time to regulate driverless cars. This usually means finding a way to tax the new technology or strangle it while a more nimble and less regulated country steals the technology or copies it. But in the heat of a quest for

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What’s Up with Libor?

Most PE firms borrow on a variable rate basis from banks. The pricing is based on LIBOR which is the acronym for London Interbank Offered Rate which is the rate at which banks are willing to lend to each other. LIBOR has often been the bellwether for real costs

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The Generational Divide Comes Together Around Mentoring

I have been introduced to a new concept in the work place called “reverse mentoring”. It was supposedly first introduced by Jack Welch to bridge the technology chasm between older and younger GE workers. Techopedia.com defines it as follows: “Reverse mentoring refers to an initiative in which older executives

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A Blind Man Driving a Ferrari

American business is like a Ferrari. It purrs at 140 mph, corners well at half that speed and is coveted by everyone. The US dollar, our capital markets, the US banking system, our rule of law, easy capital flows, startup successes, invention, innovation and orderly corporate governance all come

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Private Equity Firms Seen As Broker Dealers

A recent article in the June 30, 2016 edition of The Wall Street Journal by Norm Champ titled “An Iniquitous Raid on Private Equity” highlights the latest intrusion by the SEC on the freedom of private equity managers to arrange their relationships with their portfolio companies. In an enforcement

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Pollsters and Politics Are Great Bedfellows

Early in my career I read great advice for surviving the world of financial prediction: “Give them a date and give them a number, but never give them both at the same time”. The profession of making business predictions is a graveyard for professionals who almost got it right.

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No Hands on the Wheel

Coming back from Ft. Wayne Indiana last week I drove for 1 ½ hours in my Subaru Outback without touching the accelerator or brake! I actually went for almost ½ mile with no hands on the steering wheel. That experiment ended when a red warning light started to flash

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When You Have $100 Billion in Cash You Buy LinkedIn

I don’t get why this $26 billion deal makes sense. I guess it is like buying Facebook or You Tube but without any retail consumers. I use Twitter solely to receive business and sports information and “follow” people and organizations whose opinion I admire. I do not use Facebook

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Breaking the Sound Barrier

The sound barrier has been broken by all the TV networks and my ears are hurting badly. It is only June 15, 2016 and the big onslaught of paid for political garbage hasn’t even started and I still feel like I fell asleep next to an amplifier at a

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Private Equity for Families Blog | CapitalWorks Private Equity Cleveland Ohio

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This blog represents the views of Rob McCreary and do not reflect those of CapitalWorks or its employees. This blog is not intended as investment advice. Any discussion of a specific security is for illustrative purposes only and should not be relied upon as indicative of such security’s current or future value. Readers should consult with their own financial advisors before making an investment decision.