Says Dom DeChiara, partner and head of the private equity
and investment funds practice at King & Spalding, a New York law firm: "In the auction process, bankers are doing a good job of extracting the last penny out of the private equity
There's been a lot more private equity
interest in insurance," said John Waller, managing director for Cochran Caronia Waller, a Chicago-based investment bank.
A financial instrument that embodies an unconditional obligation, or a financial instrument other than an outstanding share that embodies a conditional obligation, that the issuer must or may settle by issuing a variable number of its equity
shares, if, at inception, the monetary value of the obligation is based solely or predominantly on any of the following:
2003-20, the Service approved the use of this type of arrangement, by permitting the LLC to invest cash from a nonrecourse loan in the CDE as a qualified equity
v) The redemption, authorization or issuance of any equity
or debt securities (including options, warrants or convertible shares) of the portfolio company or any borrowing by the portfolio company outside of the ordinary course of business;
Although dissimilar, private equity
transactions can be grouped into a few categories, according to Morse:
One of the first private equity
limited partnerships was Donaldson, Lufkin & Jenrette's "Sprout Group," which I ran from its inception in 1969.
The court's analysis, which was directed at whether advances of funds by shareholders to a subsidiary were debt or contributions of capital, are equally applicable in ascertaining the equity
status of publicly-traded securities.
Of the three different classifications of private equity
investments, direct company investment, direct fund investment and fund of fund investment, the most common route, 63.
We also called on our experience in supervising the more restricted investment authorities exercised by both member banks and bank holding companies, including authority to make investments through small business investment companies, authority to make investments overseas, and holding company authority to make investments in up to 5 percent of the voting shares and up to 25 percent of the total equity
of any company.
The total of debt and equity
outstanding would be the same.
After Congress failed to enact legislation that attempted to characterize MIPS as equity
for tax purposes, the Enron deficiency notice was the Service's first publicized action to disallow the interest deduction on MIPS arrangements.