The Willamette University Endowment has committed a total of $89 million across 13 different private equity funds. There is exposure to all broad styles, types and sizes of private equity funds from primary and secondary funds to direct private equity and fund-of-funds.
Style Breakdown
The breakdown by style of all capital committed by Willamette: seven buyout funds (54%), two mezzanine funds (16%), two venture funds (13%), a distressed debt fund (3%) and a Private REIT (14%). While there is a clear concentration on buyout funds, this private equity portfolio is diversified across all sizes and all four types of buyout funds.
The private equity funds are heavily focused on alternative energy, clean technology and healthcare. The Willamette University Endowment has direct primary exposure to these sectors through the Cadent Energy Fund, TCW European Clean Energy Fund and Pinnacle Ventures Equity Fund. These three funds are approximately 30% of Willamette’s committed capital, and do not include indirect and secondary exposure to these industries through the other seven fund-of-funds. Overall, the portfolio has a heavy concentration in the alternative and clean energy sectors. This focus is also a recurring theme in the fund-of-funds. In addition, there is minimal exposure to consumer staples, financial, industrials and materials.
Vintage Year Analysis
With the exception of Northgate Private Equity Partners, each fund has some vintage year exposure between 2006 and 2008. Funds with vintage year exposure between 2006 and 2008 were making capital commitments and investments at the peak of the macroeconomic cycle. Historically, these funds that were paying higher multiples will have a much higher cost basis than funds with vintage ...
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...ial for these private equity funds to move from not meeting expectations to meeting expectations and consequently exceeding expectations, but that is highly contingent on the future macroeconomic landscape and future credit markets. With a heavy concentration on mid-size buyout funds, private equity managers have a heavy dependence on the ability to utilize leverage and refinance their underlying investments. The 2009 financial crisis created portfolio drag in mid-sized buyout funds that can be seen throughout this portfolio. This is due to a number of capital intense and over-leveraged investments that are, or have been, in default in the last few years. If macroeconomic conditions and credit markets continue to develop we could see underlying positions improve. This would allow for the transition from not meeting expectations to potentially exceeding expectations.
...ck trends past performance is an indicator of future performance. Therefore, investors should proceed with caution when investing in Champion Enterprise.
Another observation is that GM looks to use more debt financing that equity financing for funding their activities. The debt to equity ratio has steadily decreased over the past five years and is higher that the industry average. Also, the current and quick ratios are much lower than the industry averages. This again can pose so...
The fact that majority of the capital funds was in the form of portfolio capital instead of foreign direct investment (FDI) had also worsen the situation. The ratio of portfolio capital to FDI had increased substantially from 1:1.3 in 1990 to 1:6.5 in 1993. Given the volatile nature, portfolio capital tends to respond with greater speed to changes in the environment.
MCI current capital structure is x% debt and y% equity. Their key ratios are a, b, and c. Comparing to other firms in the utilities industry they appear to be underutilizing (debt/equity). (See exhibit D). Referencing the forecast there is expected to b...
We defined several criteria to determine our choice – return, risks and other quantitative and qualitative factors. Targeting a debt ratio of 40% will maximize the firm’s value. A higher earning’s per share and dividends per share will lead to a higher stock price in the future. Due to leveraging, return on equity is higher because debt is the major source of financing capital expenditures. To maintain the 40% debt ratio, no equity issues will be declared until 1985. DuPont will be financing the needed funds by debt. For 1986 onwards, minimum equity funds will be issued. It will be timed to take advantage of favorable market condition. The rest of the financing required will be acquired by issuing debt.
The next thing to analyze is the way GE is managing its assets. If you look at the numbers GE as a company has a 3.01 return on assets, while the industry has 6.10 return on assets. It seems that GE is not very efficient in converting its investments into profits. For example a short-term bond fund run by General Electric Co.'s GE Asset Management returned money to investors at 96 cents on the dollar after losing about $200 million, mostly on mortgage-backed securities (1). The GEAM Trust Enhanced C...
Everyday is a chance to do something you would have never dreamed of doing and a chance to make society a better place. That is the beautiful thing about being an American, every person has the right and the opportunity to be incredible. When I get out of bed in the morning, I make it my personal mission to take advantage of my opportunities and make the world a better place. I believe that incredible things can be done through the smallest or largest actions. Last year, I saw the impact one baseball game can have on an entire community. That event taught me that because I have the right, I have the obligation to do the things I can to improve the lives of others everyday.
Roberts, MJ, Lassiter, JB & Nanda, R 2010, US Department of Energy & Recovery Act Funding: Bridging the “Valley of Death”, Harvard Business School, Cambridge, USA.
As higher investors generally expect higher returns for a more leveraged firm (Arnold 2013 p 697) there would appear to be very little scope for the RM to increase its debt capital unless it can convince investors profits are likely to profit significantly. Unfortunately the annual report does not suggest such growth is likely short term, due to increased parcel competition and falling letter sales (RM 2015).
they also chose to access the markets in 2000 in order to ensure access to funds at attractive pricing despite
In “Venture Capital” alternative, a sum of $3.5 million will be traded in exchange for 750,000 shares and 50% of the board seats, which will result in a weighted average outstanding shares of 1,375,000. Net income will come to $514,500 and EPS will be 0.29.
William Sharpe, Gordon J. Alexander, Jeffrey W Bailey. Investments. Prentice Hall; 6 edition, October 20, 1998
respective portfolio companies. A 2008 study by the Boston Consulting Group found that since the
There is also a two-year lock-up period for the second phase issuance of 15 percent by angel investors. The investors can only sell 50 percent of their 30 million holdings in September 2018 and the rest at the end of the lock-up period in 2019.
PayNearMe was growing at more than 30% per month with his major partners 7-eleven and Greyhound in providing these services. When some entrepreneurs call to ask Hornik, Shader tells them, “You may be thinking he’s just a nice guy, but he’s a lot more than that. He’s phenomenal: super-hardworking and very courageous. He can be both challenging and supportive at the same time. And he’s incredibly responsive, which is one of the best characteristics you can have in an investor. He’ll get back to you any hour—day or night—quickly, on anything that matters.” Shader admires Hornik’s dedication and commitment to the entrepreneurs. So Shader recommended him to his known CEO company of Rocket Lawyer to be an investor. Even though it has downsides, working like a giver is like driving it through his success. Because in offering term sheets to the entrepreneurs, if there are at the rate of 50% chance of signing the term sheets it means you’re doing well. But for Hornik he has offered 28 term sheets to the entrepreneurs and 25 of them has