THE FUTURE OF FINANCE AND FINANCIAL SERVICES, PER TODAY’S BEST PRIVATE EQUITY SPEAKERS

Quiz today’s best private equity speakers and investment banking futurist consultants and you’d get some fascinating thoughts on where the future of finance (and financial services) is heading. It almost goes without saying that new technology trends and future innovations are turning funding sources and models on their heads. Still, many of the best private equity speakers would also note that it’s just as important to think about what organizations are being impacted by all this change, and how, in addition to the actual trends doing all the impacting. In keeping with this philosophy, we present different types of private equity firms you’ll want to watch, and how they respond, to get a sense of the true influence of all these emerging innovations.

• Venture Capital Cos – Invest in early stage and emerging companies with high growth potential. Take on more risk in hopes of higher reward.
• Growth Equity Firms – Invest in more mature privately-held companies that are looking to expand or transition to the next level. Provide growth capital.
• Buyout Companies – Acquire a controlling interest in mature companies through leveraged buyouts, taking the companies private, as the best private equity speakers put it.
• Distressed PE Providers – Invest in troubled or bankrupt companies that they turnaround. Often convert debt to equity.
• Mezzanine Funds – Provide flexible debt capital to companies, usually subordinate to senior debt. Hybrid of debt and equity.
• Infrastructure PE Firms – Invest in public infrastructure assets like roads, airports, energy distribution the way the field’s best private equity speakers tell it. Often less risky profile.
• Fund of Funds – These firms invest in a portfolio of other private equity funds rather than directly in companies. Added diversification.
• Sovereign Wealth Funds – State-owned investment funds that act as limited partners, investing in other PE funds or directly in companies. Their influence is growing, the best private equity speakers now assert.
• Pension Funds – Many public & corporate pension funds allocate capital to private equity funds as limited partners for income.
• Family Offices – PE investment by family offices is popular given the long investment horizons and higher risk tolerance.

From an investment standpoint, strategies span the corporate lifecycle from early stage ventures to mature buyouts. Overall the goal is to invest in and grow private companies for a profit.