*Driving Forces: Private Equity

Parents

*Driving Forces: Market Research, Intelligence, Analysis, Datapoints, Databases & Trends
*Driving Forces: Risk Capital_Angel, Venture (VC), Strategic Corporate( CVC), Private Equity (PE), Sovereign Wealth, Mergers and Acquisition (M&A)

1,200 active private equity funds
15 years ago there were only a handful of firms managing at least $1 billion, now there are at least 260
Fund's managers specialize in.
In 2005, estimates Buyouts magazine, $174 billion in new money
Investment would be taxed at 15% as long-term capital gains (assuming the investment was held at least a year), vs. the 35% for
Most big ones boast annual returns in excess of 20%, vs. the average 5% return delivered last year by companies in the S&P 500.
Partners also get a share of profits, usually 20%, when a company is sold or taken public
Partners typically take 1.5% or so off the top as a management fee each year
Ply their trade among small and mid-sized target companies in industries
Private-equity-backed IPOs are generally mature, sound companies with annual sales of more than $50 million
The industry controls $800 billion in capital, estimates researcher Thomson Venture Economics

Intermediaries: Private Equity, Investment Banking & Financial Analysis and Services Companies