Alternative Investments : A Competitive Advantage

Oaktree Capital Group and Apollo Global Management are large players in the alternative asset management space that both offer attractive investment strategies. Apollo has a broader scale and scope than Oaktree, and offers a wider range of private equity products. While these features may be more attractive to investors, both firms offer unique investment strategies in the distressed investments space. Thus, either firm may offer a private equity product that best suits the client’s portfolio allocation criteria.

2) Liquidity is better and this means they are being proactive and managing their money.

Fund flows are positively related to past performance, and better performing partnerships are more likely to raise follow-on funds and larger funds. Figure 1 aggregates the historical returns of Exhibition 1 and compares them to the fund sizes of Accel since 1983 vintage. The graph shows that there is a positive correlation between the historical returns of both the average and upper quartile with the fund size of Accel. However, it can be seen that as returns for top performers and average VC funds decline after 1996, Accel was still able to increase its fund size by 83%. Accel continued ability to raise larger funds implies not only the success of the company’s past strategic performance but also the existing high demand for investing with Accel. Hence, it would be justified that for the latest VC fund Accel has proposed to charge a carried interest of 30% rather than 20%. Our analysis then looks into this latest VC fund, Accel Partners VII, and forecasts the NPV and IRR of the investment under specific standard assumptions. Table 2 shows a part of our NPV and IRR calculations under different steady growth rate. It should be noted that for investors to be indifferent between investing in a typical 20/80 VC fund versus the 30/70 Accel VII fund, Accel must outperform the average in every NPV and IRR

The Yale Endowment is known in the financial industry as a pioneer in using a combination of innovative asset allocation and active management to produce impressive long-term performance. In fact, the Endowment produced a 17.8% average annual return, net of fees, in the ten-year period ending June 30, 2007.1 This performance is particularly impressive given that, in recent years, the Endowment portfolio has carried less than a 40% weighting in equities. Instead, under the leadership of Chief Investment Officer Dave Swensen, the Yale Investments Office

Financial management over time has become the most important aspect of business decisions in funding the enterprise. Thus, the term “financial services” became more popular in the United States partly as a result of the Gramm-Leach-Biley Act of the latter 1990s. This act has enabled all companies to operate in the U.S. financial services industry. Companies usually have two different approaches to this new type of business, insurance, and investment banking. Whether the firm keeps the original brands or adds the acquisition to its holding company

They carry a larger proportion of current assets relative to their operating revenue than their competitor.

* Equity value is established for the firm * Current shareholders can diversify personal portfolios

Conversely, looking at the income statement for PMWL, operating income shows healthy gains of $45,862, which means the operating expenses are significantly lower in comparison to AWBL’s. However, PMWL’s cost of goods sold appear abnormally high, which makes an investor question whether this company is at it’s maturity phase in the product life cycle, and how much additional capital is necessary to bring this figure down to a number that leverages economies of scale and allows for profit maximization.

Small and Medium sized U.S. based companies should increase their level of investment in Bosnia because of low employment cost, tourism business opportunities, and great political environment for international or U.S. businesses.

REFERENCES•Ross, S.A., Westerfield, R.W., Jaffe, J., Jordan, B.D. "Modern Financial Management". McGraw-Hill, Eighth Edition, (2008)•R.A. Brealey and S.C. Myers, "Principles of Corporate Finance", McGraw-Hill, Seventh Edition, (2003).

Over the past few years, disruptive ideas, innovations and economic forces have reshaped the way we live. Investors are constantly researching new and promising ideas in order to capitalize on themes that will drive tomorrow’s markets. Broadly speaking, thematic investing is the approach of taking advantage of future trends while just as importantly avoiding the losers. Its forward looking approach stands in contrast to a relative investing strategy which relies heavily on market capitalization to determine weights in a portfolio. On the other hand thematic investing is a top down investment approach providing investors an opportunity to generate alpha. Fundamentally, the objective of thematic investing is to not only generate superior returns but is evolving traditional index investing.

The reason why investors are willing to let the required rate of return decrease is the lower concerns about asymmetric information due to the disclosures of financial statements. In the past, in order not to be subjected to Investment Company Act of 1940, Blackstone once analyzed its operations and concluded that it was not an investment company. The SEC subsequently reviewed the conclusions and did not object. However, if it goes public, it will face problems such as its financial reporting, which should compliant with the GAAP. Therefore, Blackstone

In today’s global markets companies are faced with tough decisions, one of the toughest decisions a corporation faces is whether or not they should diversify their business. Diversification simply means to mix a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio (Silvia M.Chan-Olmsted, 2007). Firms that have success strive to transfer their winning business know- how to new activities. To these firms,

It is real that the globalization rapidly expand through borders and industries, and it has happened because of forgin dircet investment. Foregin direct investment has advan and disadvantages. Foregin direct investment considered as one of the most important major in the business and economicenvironment and it is connected with business enterprise and benefits. This is very helpful because it helps to achieve your business goal in a short amount of time. Around the world, many countries open their borders to foreign investment. The one that makes the investment can be business corporation or individual, and group of companies. FDI leads to increase in job creation and employment.

Conglomerate hope to outperform the overall market growth? Can size and diversity be made an asset rather than a liability?