Private Equity Made Simple

by Jörgen Eriksson on May 27, 2015

Barbarians at the GateThis week, the Financial Times published a brief video which explains what private equity is all about. I first learned about private equity in the autumn of 1988, while I was studying the corporate finance course at Stockholm School of Economics. During that autumn, Kohlberg-Kravis-Roberts & Co (KKR) bought the huge conglomerate RJR Nabisco Inc. in a leveraged buy-out, in competition with nearly all of the major private equity players of the day, including Morgan Stanley, Goldman Sachs, Salomon Brothers, First Boston, Wasserstein Perella & Co., Forstmann Little, Shearson Lehman Hutton, and Merrill Lynch. Most of those firms do not exist any more, although KKR remains and is one of the most successful.

We used the on-going drama as a case study at the SSE, and it was later captured in the excellent motion picture Barbarians at the Gate. Many times since then, we have been involved in work with private equity firms and their holdings, including our long collaboration with Musa Capital in South Africa. Private equity firms have come of age since their corporate raider days and are increasingly vying for retail investors’ cash. But what do they do? And what risks do investors face? John Authers, Financial Times senior investment columnist, explains.

Private Equity Made Simple

About Jörgen Eriksson :

Jörgen Eriksson is the founder of Bearing and is the Chairman of the firm since it was created. He has successfully expanded Bearing into covering projects on four continents. He is also Adjunct Professor of Innovation Management at the International University of Monaco and at Universitat Politècnica de Catalunya in Barcelona and he is an active member of the Founders Alliance organisation.

Working with consulting engagements across Bearings practices, he has over the past fifteen years participated in and supervised a large number of client projects, from innovation system development and place development and branding, to merger and acquisition assignments and leading edge research and business development activities for key clients.

His new book, Branding for Hooligans, will be published in 2015. It is about how innovation and branding are key survival factors in our modern times of hyper competitive markets.

Prior to Bearing, he was Director of Europe, Middle East, and Africa for Trema Treasury Management, a technology and consulting services provider, supplying financial software solutions for the global financial industry, Clients included The European Central Bank, Citibank, SEB, South African reserve Bank, Deutsche Bank, Abu Dhabi Investment Authority (ADIA), as well as many other large financial institutions and Fortune 500 companies.

Early in his career Eriksson was educated at the Stockholm School of Economics, where he studied economics, financial economics and philosophy. He then worked in Scandinavian investment banks and also for the Swedish Institute of National Defense Research.

You can contact Jörgen on e-mail jorgen.eriksson@bearing-consulting.com, connect on LinkedIn on http://fr.linkedin.com/pub/jörgen-eriksson/0/38/8a0/ and follow him on twitter on joreri508.

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