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(FINANCE) private equity fund; business entity formed to pool money provided by investors in order to buy majority stakes in existing companies. A common practice is to then "take the company private," so that it no longer has shares trading on the stock market. The company is then restructured, so that it has entirely different management practices, or a different business strategy. Afterward, the PE fund will most likely re-sell the company on the stock market in a sponsored IPO.
PE funds are usually limited partnerships (LPs), which gives them special privileges of nondisclosure; most are organized in the State of Delaware. PEF's have sponsors, or "principals," who are responsible for organizing the fund and recruiting other investors. They are never "limited liability partnerships" (LLP's); apologies to Urban Dictionary for erroneously mixing them up in my definition for "private equity fund" and "hedge fund." The difference between the two is explained there.
Among the best-known PE funds are Blackstone Group*, Kohlberg Kravis Roberts (KKR)*, Goldman Sachs Capital Partners*, Carlyle Group, Permira, Apollo Management, Providence Equity, TPG Capital, Warburg Pincus, and Cerberus. Companies marked with an asterisk (*) are publicly listed corporations; most PE funds are privately managed. The selection above includes the largest ones by capital under management.
PE funds are usually limited partnerships (LPs), which gives them special privileges of nondisclosure; most are organized in the State of Delaware. PEF's have sponsors, or "principals," who are responsible for organizing the fund and recruiting other investors. They are never "limited liability partnerships" (LLP's); apologies to Urban Dictionary for erroneously mixing them up in my definition for "private equity fund" and "hedge fund." The difference between the two is explained there.
Among the best-known PE funds are Blackstone Group*, Kohlberg Kravis Roberts (KKR)*, Goldman Sachs Capital Partners*, Carlyle Group, Permira, Apollo Management, Providence Equity, TPG Capital, Warburg Pincus, and Cerberus. Companies marked with an asterisk (*) are publicly listed corporations; most PE funds are privately managed. The selection above includes the largest ones by capital under management.
The PE fund first appeared in the 1970's as a result of changes to ERISA. Institutional investors, usually pension funds, could be legal partners in an LP; they also required a place to park assets with very high rates of return.
In the USA, PE funds have long been sinecures for the most powerful political dynasties: the Rockefellers, the Romneys, the Bushes, and others.
In the USA, PE funds have long been sinecures for the most powerful political dynasties: the Rockefellers, the Romneys, the Bushes, and others.
by Abu Yahya September 2, 2010
Get the PE fund mug.phenomenon in which greater input of effort, money, etc. yields smaller results. Crucial part of the idea is that if you're using x to get y results (where y is the thing you want). then additional input a will yield additional results b, but not in the same proportion as before.
On average, before, you put in x to get y, so your yield was y/x. But if you increase x by amount a, then your results will be y + b, where
(y + b)/(x + a) < y/x
and this will only get worse.
Diminishing marginal returns (DMR) is used to explain why the supply curve in economics slopes upward, i.e., increasing the quantity supplied requires an increased price of most things.
Sometimes DMR is more than offset by "economies of scale," which allows more of a thing to be supplied more cheaply than a small amount.
On average, before, you put in x to get y, so your yield was y/x. But if you increase x by amount a, then your results will be y + b, where
(y + b)/(x + a) < y/x
and this will only get worse.
Diminishing marginal returns (DMR) is used to explain why the supply curve in economics slopes upward, i.e., increasing the quantity supplied requires an increased price of most things.
Sometimes DMR is more than offset by "economies of scale," which allows more of a thing to be supplied more cheaply than a small amount.
At first his flowers and treats swept her off her feet, but then he had to do more and more lavish things to please her. It was a classic case of diminishing marginal returns.
by Abu Yahya June 3, 2009
Get the diminishing marginal returns mug.(FINANCE) a call option that is written by a party who possesses none of the underlying stock; a commitment to sell a fixed amount of something at a fixed price, of something one does not happen to have.
Writing an option means selling a certificate that guarantees the holder can buy a traded item for a guaranteed price (strike price). The person who writes the option is betting that the price of the underlying stock will go down (shorting a stock, AKA a short position). If the person writing the option is correct, then she makes money off the sale of the option, but does not have to worry about honoring the option, since it is out of the money and has no intrinsic value.
If the person writing the option is wrong, and the price of the underlying stock goes up, then she must buy the item at the higher spot price specifically to sell it at the low strike price ("short cover"). In rare cases, a person who makes this sort of error will actually drive the spot price much higher than it would have gone ordinarily.
Writing an option means selling a certificate that guarantees the holder can buy a traded item for a guaranteed price (strike price). The person who writes the option is betting that the price of the underlying stock will go down (shorting a stock, AKA a short position). If the person writing the option is correct, then she makes money off the sale of the option, but does not have to worry about honoring the option, since it is out of the money and has no intrinsic value.
If the person writing the option is wrong, and the price of the underlying stock goes up, then she must buy the item at the higher spot price specifically to sell it at the low strike price ("short cover"). In rare cases, a person who makes this sort of error will actually drive the spot price much higher than it would have gone ordinarily.
Naked option writing is quite risky because you can make only a limited amount of money. yet the risks are high.
by Abu Yahya April 15, 2010
Get the naked option mug.the amount of goods and services that a country imports, minus the goods and services that it exports *in a calendar year*. In 1999 Japan exported much more than it imported, so it had a trade surplus. The same year, the United States imported more than it exported, and therefore had a large trade deficit.
While Japan had a trade surplus and the USA had a trade deficit, both had something called a trade balance, which was negative for the USA and positive for Japan.
While Japan had a trade surplus and the USA had a trade deficit, both had something called a trade balance, which was negative for the USA and positive for Japan.
During economic downturns, political leaders become very concerned if their country is running a trade deficit, because it means that jobs are being lost to business overseas.
by Abu Yahya February 14, 2009
Get the trade deficit mug.employing the services of drabs; associating with strumpets and wanton minxes; having sex with prostitutes.
In order to find out what sorts of thing his son Laertes was up to, Polonius had his personal spy strike up conservations with classmates and bring up made-up rumors about him. Polonius thought it was all right to suggest his own son was dueling, gambling, or whoring ("drabbing"). but thought anything worse might "dishonor" poor Laertes.
by Abu Yahya March 21, 2010
Get the drabbing mug.the gap between revenues and expenditures for a government (over a given period of time); often referred to as an internal deficit or fiscal deficit.
The public deficit accumulates over each time period (usually a year) into what is known as the public debt.
by Abu Yahya February 14, 2009
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by Abu Yahya April 10, 2010
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