Comments on: Brazil’s love of equity http://blogs.reuters.com/felix-salmon/2011/03/29/brazils-love-of-equity/ A slice of lime in the soda Wed, 22 May 2013 01:01:25 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Davie http://blogs.reuters.com/felix-salmon/2011/03/29/brazils-love-of-equity/comment-page-1/#comment-25472 Davie Wed, 30 Mar 2011 21:31:29 +0000 http://blogs.reuters.com/felix-salmon/?p=7757#comment-25472 leveraged buyout investing is a class of private equity. so is venture capital (assuming the VCs buy equity and aren't making some sort of loan). private equity is just what it sounds like - equity that is not publicly traded. "the idea of a private-equity shop without debt is fundamentally at odds with the genesis of the industry." this is not true. the idea that PE in Brazil is done with no/very little debt is only surprising/interesting/profound to people who do not understand finance very well (sorkin included). private equity done the "old-fashioned way" was just people investing in businesses that couldn't get bank loans...something more comparable to VC today and something akin to PE in Brazil right now. not something "unprecedented." leveraged buyout investing is a class of private equity. so is venture capital (assuming the VCs buy equity and aren’t making some sort of loan). private equity is just what it sounds like – equity that is not publicly traded.

“the idea of a private-equity shop without debt is fundamentally at odds with the genesis of the industry.” this is not true. the idea that PE in Brazil is done with no/very little debt is only surprising/interesting/profound to people who do not understand finance very well (sorkin included).

private equity done the “old-fashioned way” was just people investing in businesses that couldn’t get bank loans…something more comparable to VC today and something akin to PE in Brazil right now. not something “unprecedented.”

]]> By: walt9316 http://blogs.reuters.com/felix-salmon/2011/03/29/brazils-love-of-equity/comment-page-1/#comment-25437 walt9316 Tue, 29 Mar 2011 17:47:18 +0000 http://blogs.reuters.com/felix-salmon/?p=7757#comment-25437 "But it’s still better than debt." I thought "leveraged" implied debt. “But it’s still better than debt.” I thought “leveraged” implied debt.

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