The Future of Private Equity

A distinguished University of Chicago financial economist and longtime observer of private equity markets responds to questions like the following:

• ? With a track record that now stretches in some cases almost 30 years, what have private equity firms accomplished? What effects have they had on the performance of the companies they invest in, and have they been good for the economy?
• ? How will highly leveraged PE portfolio companies fare during the current downturn, especially with over $400 billion of loans coming due in the next three to five years?
• ? With PE firms now sitting on an estimated $500 billion in capital and leveraged loan markets shut down, are the firms now contemplating new kinds of investment that require less debt?
• ? If and when the industry makes a comeback, do you expect any major changes that might allow us to avoid another boom‐and‐bust cycle? Have the PE firms or their investors made any obvious mistakes that contribute to such cycles, and are they now showing any signs of having learned from those mistakes?

Despite the current problems, the operating capabilities of the best PE firms, together with their ability to manage high leverage and the increased receptiveness of public company CEOs and boards to PE investments, have all helped establish private equity as “a permanent asset class.” Although many of the deals done in 2006 and 2007 were probably overpriced, the “cov‐lite” deal structures, deferred repayments of principal, and larger coverage ratios have afforded more room for reworking troubled deals. As a result of that flexibility, and of the kinds of companies that get taken private in leveraged deals in the first place, most troubled PE portfolio companies should end up being restructured efficiently, thereby limiting the damage to the overall economy. Part of the restructuring process involves the use of the PE industry's huge stockpile of capital to purchase distressed debt and inject new equity into troubled deals (in many cases, their own). At the same time the PE firms have been working hard to rescue their own deals, some have been taking significant minority positions in public companies, while gaining some measure of control. Finally, to limit overpriced and overlev‐eraged deals in the future, and so avoid the boom‐and‐bust cycle that appears to have become a predictable part of the industry, the discussion explores the possibility that the limited partners and debt providers that supply most of the capital for PE investments will insist on larger commitments of equity by sponsors to their own funds and individual deals.     

The EU’s Medium-term Financial Perspective and Turkey’s Potential Slice of the Cake

The issue of Turkey’s membership in the EU remains controversial, and the arguments for and against are not only economic. Nevertheless, the potential economic impact of Turkish membership does play an important role. How much financial support is Turkey presently receiving under existing pre-accession programmes and what changes could be expected in the case of full membership?     

利用外资中国家经济安全的战略思考

吸收利用外资给我国经济发展带来了机遇和挑战 ,外商投资中的不合理、不合法手段。外商直接投资对我国经济安全的负面影响。利用外资中维护国家经济安全的战略思路     

人类能走出杰文斯阴影吗？

技术进步与环境改善之间存在着怎样的一种关系？技术悲观主义者和技术乐观主义者正进行着激烈的争论。他们都以翔实的资料为立论论据,把两种截然相反的观点摆在世人面前,现在,我们还不能简单地肯定或者否定某一种观点,因为技术在进步,各种各样的环境问题正在消失或出现,而争论也在继续。     

长株潭城市群连绵区小城镇的发展模式和对策研究

连绵区小城镇的发展问题在未来一段时期内是长株潭城市群建设必须研究和解决的一项重要课题.本文研究了长株潭城市群连绵区小城镇的发展模式及发展对策.     

存在着所谓价值分配制度吗--与李松龄同志商榷

人类社会被分配的对象只可能是财富而不可能是价值，因而从来就没有出现过也不可能出现所谓价值分配制度。本文对分配制度的安排是否受客观经济条件的制约、所谓价值分配制度是否具有存在的可能性以及马克思是否认为或主张被分配的对象是价值这三个问题进行探讨，以论证自己的观点。     

经济全球化与21世纪中国农业问题研究

科学技术的进步和社会分工的细化直接推动了生产力的高速发展。21世纪又是一个人类社会发展转折时期。知识经济将逐步代替传统经济的主体地位成为时代的潮流。农业作为基础产业在国民经济发展中占有重要的地位。解决好农业问题是关系到社会长期稳定和新的全球环境下保障我国产业持续、稳定、协调发展的头等大事。     

老工业城市的旅游规划探索——以湖北省黄石市为例

传统老工业城市,常常因为较差的城市景观、严重的环境污染及已固定化了的城市形象等原因,使旅游业发展面临更多的困难,也因而其旅游规划更富有挑战性。本文以湖北省黄石市为个案,进行了旅游规划实践探索。指出老工业城市可以扬长避短,在旅游发展中充分发挥所拥有的优势,走以城市旅游、体育旅游、会议旅游、工业旅游及现代观光农业旅游为主的旅游发展道路,就有可能在日益激烈的旅游市场竞争中争得一席之地。