Tejas Tope

The Blackstone-Hilton Saga: A Private Equity Thriller It's 2007, and Blackstone just made a bold move - acquiring Hilton Hotels for a whopping $26 billion structured as a Leveraged Buyout with leverage of ~80% and Debt to EBITDA of ~12x. But little do they know, they're about to face their biggest challenge yet. Enter the 2008 financial crisis. The hotel industry is hit hard, and Hilton's value plummets to $6 billion. Many would've thrown in the towel, but not these titans of private equity. Cue the heroic turnaround: - They roll up their sleeves and renegotiate $20 billion in debt. - They double down, injecting an additional $800 million. - Cost-cutting becomes an art form. Every penny saved counts. - They set their sights globally, expanding Hilton's footprint in emerging markets. - Investments in property renovations, technology upgrades, and service enhancements elevated the overall guest experience. - Innovation takes center stage with new brands like Home2 Suites. - Quantitative easing also helped preserve net earnings for Hilton. The grand finale: In 2013, Hilton goes public at a $20 billion valuation. By 2018, Blackstone exits completely, pocketing a cool $14 billion profit. Job well done. But where to send the big box of chocolates? 🍫 The moral of the story: In the world of private equity, patience isn't just a virtue - it's a strategy. Operational expertise isn't just helpful - it's crucial. And sometimes, when you're staring at a potential disaster, you might just be looking at your biggest success story in disguise. #PrivateEquityMagic #ValueCreation #CrisisToSuccess #BlackstoneHilton

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An increasingly busy H2 is expected, in both deals and in proactive value creation. Hopefully we’ll also see increased exits via IPOs in the UK with the FTSE250 (the public market index for mid market businesses) on an upward trend YTD and especially encouraging in the last month. This will be aided by the new streamed listing rules announced by the Financial Conduct Authority today.

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As a part of my research project for master’s at UCL School of Management, I took upon to study the “Strategic analysis of M&A in luxury industry” and specifically I decided to study the iconic $16.2 billion merger between LVMH group and “blue box jeweler” Tiffany & Co. (one of the largest value deals in the industry). The luxury conglomerate industry has been a result of the battlefield of numerous M&A transactions, and conglomerate groups such as Kering, LVMH and Richemont have all been a result of successful M&A transactions, spanning across product and business groups. However, a major proportion (75-90%) of M&As result in failures. Then why does M&A continue to be a way of expansion for most companies, specifically luxury conglomerates? The study focused on strategic rationale for LVMH to acquire the iconic jewelry brand. The study concluded the following strategic reasons for this large-value deal: 1️⃣ LVMH’s portfolio did not include a strong presence in the jewelry business (only 7% of its total portfolio). What better than targeting a brand that has been the face of “proposals” for decades? 2️⃣ Growing demand for Jewelry segment (12% CAGR) attracted LVMH to take a slice of this expanding market 3️⃣ Tiffany’s commitment to sustainability intersects with LVMH’s sustainability goals for future, fast-tracking its progress towards LVMH’s goals 4️⃣ LVMH has major proportion of sales from China (a trend visible by many luxury companies), and Tiffany caters to a larger audience in the USA. Hence the union will help LVMH to reduce reliability on Asian markets and help create a geographically diversified consumer base After concluding this research, and with latest announcement of LVMH’s revenue and profits falling, it will be interesting to see will M&As continue to be a favorable strategy for luxury brands to expand and sustain? Do you think the strategy followed by LVMH can bring long-run success to the group? Would love to hear diverse opinions on the same and exchange ideas! #luxury #LVMH #mergers #acquisitions #strategy #expansion #research #tiffany #conglomerates

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Beyond the points mentioned, here are some additional considerations for Single Family Offices: -Robust ‘CREDIBLE’ Governance: Strong governance starts with a diverse and independent board that can provide objective oversight and challenge assumptions. It is an increasing expectation that boards will exercise credible governance and risk management.  -Agility and Adaptability: The ability to adjust strategies quickly based on changing market conditions can be a key differentiator. Single Family Offices should consider incorporating scenario planning and stress testing into their investment processes. -Human Capital: Attracting and retaining top talent is essential for effective Single Family Office operations. Investing in professional development and fostering a collaborative culture will be crucial for success. -Cybersecurity: As Single Family Offices manage increasingly complex portfolios, robust cybersecurity measures are paramount. Regular security assessments and ongoing employee training are critical. -Growth Mindset: Is (or projected) AUM keeping up with the generational growth? Furthermore, the rise of impact investing offers exciting opportunities for Single Family Offices to: -Align investments with family values: Many families are seeking to leverage their wealth for positive social and environmental impact. -Access innovative asset classes: The impact investing space is growing rapidly, offering new opportunities for diversification and potentially strong returns. This is a crucial time for thought leadership and collaboration within the Single Family Office community. #SingleFamilyOffices #PDA #BoardDirectors #BusinessTransitions #BoardGovernance #PDAWisconsin #PDAAarizona #ESOP #businessgrowth

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Most books about managing medical practices may not always meet the specific needs of healthcare professionals. These stand out: "The Healthcare Executive's Guide to Navigating the Post-Affordable Care Act Landscape" by Terry A. Cavalier —Provides practical insights for healthcare executives to adapt to changes in the healthcare environment following the ACA. "The Business of Healthcare Innovation" by Lawton Robert Burns —Offers a comprehensive look at the different sectors within the healthcare industry and how innovation is driving change. "Best Practices in Medical Management" by Judy Capko —Delivers practical advice and strategies for managing a successful medical practice, including tips on improving efficiency and patient care. "The Medical Practice Start-Up Guide" by Marc D. Halley - A step-by-step guide for physicians and practice managers on how to successfully start and manage a medical practice. "Lean Hospitals: Improving Quality, Patient Safety, and Employee Engagement" by Mark Graban - Focuses on applying Lean principles in healthcare settings to improve quality and efficiency. Any others you’d add?

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Let's face it. Urban living is an escape from Natural living. Escaping a direct relationship with nature requires creation of an indirect relationship with it, where the food reaches us even if we don't work on the farm - this indirect way is the money way of life. Nature is our own because we have come from it, it has nourished and nurtured us. Escaping or abandoning one's own requires compromising our morals, our values. When everyone makes this compromise, Law makes our moral compromise normal for all of us. Ordinarily, everyone who compromises with morals is either boycotted or ends up in prison. But here, they end up in cities. Cities are glorified for the anonymity they offer, the space they provide for people to do our thing, grow and succeed, to become rich. And, as Massachusetts showcases, there's no limit to how much we can grow if we are willing to compromise our morals, our values.

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Summary: The article discusses the current challenges faced by VC firms in attracting new capital, but highlights how established firms like Kleiner Perkins are still able to raise large funds. It also touches on the potential impact of AI on investment strategies. Key takeaways: Many VC firms are struggling to secure new capital in a tepid IPO environment. Established, brand-name firms like Kleiner Perkins are still able to raise significant funds. AI is emerging as a potential game-changer in the investment landscape. Counter arguments: It may be premature to attribute Kleiner Perkins' fundraising success solely to AI; other factors could also be at play. The article may overlook smaller VC firms that are also finding success in fundraising. #venturecapital #vc #venture #startups #artificialintelligence

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"Thrilled to have participated in the recent competition focused on Wall Street Equity Research 2024: Equity Research and Insight Analysis! Grateful for the opportunity to delve into the dynamic world of financial analysis, gaining invaluable insights and honing my skills alongside talented peers. This experience has reinforced my passion for uncovering market trends, analyzing data, and providing strategic recommendations. Looking forward to leveraging this experience to contribute meaningfully to the finance industry. #EquityResearch #Finance #MarketAnalysis"

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𝐆𝐨𝐥𝐝𝐦𝐚𝐧 𝐒𝐚𝐜𝐡𝐬 𝐂𝐥𝐨𝐬𝐞𝐬 $𝟕 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐑𝐞𝐚𝐥 𝐄𝐬𝐭𝐚𝐭𝐞 𝐃𝐞𝐛𝐭 𝐅𝐮𝐧𝐝 𝐭𝐨 𝐀𝐝𝐝𝐫𝐞𝐬𝐬 𝐌𝐚𝐫𝐤𝐞𝐭 𝐃𝐞𝐦𝐚𝐧𝐝𝐬 #GoldmanSachs has strategically positioned itself as a key player in the real estate finance landscape with the recent closing of a $7 billion real estate debt fund. As traditional banks pull back amidst economic uncertainties concerning valuations, inflation, and interest rates, Goldman's West Street Real Estate Credit Partners IV emerges to fill a critical financing gap. This fund, bolstered by $3.6 billion from investors and $1.4 billion of Goldman’s own capital, aims to provide robust debt financing solutions, particularly targeting high-quality real estate projects undergoing transitions like refurbishments or developments. For #commercialrealestate landlords in Los Angeles, this could signify a vital influx of available capital for projects that might have stalled due to funding shortages. The fund’s focus on both first-lien and mezzanine financing offers flexible solutions for property enhancements and refinancing, potentially accelerating property value enhancements and stabilizing income streams. As private lenders now originate nearly half of all commercial real estate mortgages, this move by Goldman Sachs could encourage more competitive lending conditions, benefitting landlords with improved loan terms and expanded opportunities. Landlords and investors in the Los Angeles area should closely monitor this development as it may influence project viability and capital access. Follow our page Beyond Space Inc. for more updates on how shifts in real estate financing can impact your investment strategies.

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Excited to share that I just completed JP Morgan Chase & Co. Investment Banking on Forage. In the simulation I: 1)Identified an ideal M&A target for a client based on an assessment of their strategic and financial criteria. 2)Constructed a DCF model to calculate the valuation of the M&A target and adjusted the model to account for a competitor bid and supply chain interruption. 3)Created a 2-pager for the client containing a company profile and summary of the auction process. Skills Acquired: *CLIENT COMMUNICATION *COMPANY ANALYSIS *CROSS-TEAM COLLABORATION *DCF *M&A PROCESS UNDERSTANDING *M&A SCREENING *MODELLING *PRESENTATION *REACTING TO CHANGES *STRATEGIC RATIONALE

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I'm excited to share that I have completed the Fundamentals of Alternative Investment (FAI) course offered by CAIA Association. I would also like to thank Wall Street Bound, Inc for providing me with the opportunity to take such a course that has greatly expanded my understanding of alternative investments. This experience, although challenging and time consuming, has sparked a new interest within me for the field of asset and wealth management. I hope to one day be able to explore the topics of asset management and alternative investments further, but for now this marks a milestone for my undergraduate career. Within the Fundamentals of Alternative Investments course there were many things covered, and those subjects are as follows. Foundations Section: Gained foundational knowledge on alternative investments, including unique risk and return considerations, liquidity profiles, and return dispersion. Explored various fund vehicles ranging from fully illiquid to semi-liquid to liquid. Strategy Introductions Section: Organized alternative investments into four risk and return categories. Delved into multiple sub-strategies within each category, covering their characteristics, objectives, risks, performance, and suitability for clients. Learned how to integrate these strategies into diversified portfolios effectively. Portfolio Applications Section: Focused on allocating and implementing alternative investments in diversified portfolios. Studied asset allocation and portfolio construction methods, managing liquidity across portfolios, operational considerations, and client communication. I'm looking forward to leveraging this knowledge to one day drive investment strategies and deliver value in my professional journey.

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Sports mergers and acquisitions (M&A) are booming. Wall Street firms are setting up specialized banking teams to meet this demand. When billionaires want to invest in sports teams, they call elite bankers. Goldman Sachs and Inner Circle Sports are leading the charge. These banking teams facilitate complex deals. They ensure owners and investors get the best value. Their expertise is crucial in the sports M&A landscape. Factors driving this rise include increasing team valuations. Sports teams in leagues like the NFL, NBA, and EPL are seeing soaring values. Global appeal also attracts investors worldwide. Diverse revenue streams from ticket sales, merchandise, media rights, and sponsorships make sports teams lucrative. Specialized banking teams are vital behind the scenes. They ensure the passion and business of sports come together. This is an exciting time for finance and sports enthusiasts. These bankers drive the growth of the sports industry. They open new opportunities for investors and fans alike. #SportsM&A #Finance #GoldmanSachs #InnerCircleSports #Investment #BusinessOfSports #WallStreet #SportsIndustry #DealMakers #Innovation

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Maximizing Your Compensation as a Private Equity Associate As a 33-year-old private equity associate in the financial hubs of London and New York, negotiating a strong salary and carry share is crucial. Here are targeted strategies to enhance your negotiating power: 1. Document Your Successes: Build a detailed portfolio of your contributions, especially those that directly influenced the fund's performance. Include deal sheets, growth metrics, and any client testimonials. This evidence showcases your direct impact on the bottom line. 2. Understand the Market: Research current compensation trends in your sector. Tools like the Private Equity Compensation Report provide benchmarks for salary and carry. Know these figures to ensure your requests are aligned with industry standards. 3. Optimize Timing: Choose a strategic moment for salary talks—ideally after a successful deal closure or during performance reviews when your contributions are top of mind. 4. Negotiate Carry Terms: Focus on the specifics of carry distribution. Argue for a favorable vesting schedule and a competitive percentage of the carry. Discuss thresholds and the timing of distributions to align them with your career goals. 5. Professional Representation: Consider hiring a negotiation consultant who specializes in the finance sector. Their expertise can be instrumental in navigating complex compensation discussions and securing optimal terms. By preparing thoroughly and leveraging industry standards, you can approach negotiations confidently and secure a compensation package that reflects your value to the firm. Go for it!

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Maximizing Your Compensation as a Private Equity Associate As a 33-year-old private equity associate in the financial hubs of London and New York, negotiating a strong salary and carry share is crucial. Here are targeted strategies to enhance your negotiating power: 1. Document Your Successes: Build a detailed portfolio of your contributions, especially those that directly influenced the fund's performance. Include deal sheets, growth metrics, and any client testimonials. This evidence showcases your direct impact on the bottom line. 2. Understand the Market: Research current compensation trends in your sector. Tools like the Private Equity Compensation Report provide benchmarks for salary and carry. Know these figures to ensure your requests are aligned with industry standards. 3. Optimize Timing: Choose a strategic moment for salary talks—ideally after a successful deal closure or during performance reviews when your contributions are top of mind. 4. Negotiate Carry Terms: Focus on the specifics of carry distribution. Argue for a favorable vesting schedule and a competitive percentage of the carry. Discuss thresholds and the timing of distributions to align them with your career goals. 5. Professional Representation: Consider hiring a negotiation consultant who specializes in the finance sector. Their expertise can be instrumental in navigating complex compensation discussions and securing optimal terms. By preparing thoroughly and leveraging industry standards, you can approach negotiations confidently and secure a compensation package that reflects your value to the firm. Go for it!

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💡 Is a CFA the way to break into investment banking for non-target students? 🤔 The short answer, not really… Instead of getting a CFA, which by the way takes more time, it's more important to: ✅ Master finance concepts to nail the technicals (such as, walk me through a DCF) ✅ Craft polished stories (ideally 6-7) that allow you to ace the fit questions. ✅ Start networking early. Aim for ~4 calls/week. ✅ Do mock interviews with industry pros ✅ Apply for internships in finance 😔 We know it's tough, but if you need guidance through any of it, follow us on LinkedIn, and check out our website. 📨 DM us. We’ve got your back. #jobs #internships #investmentbanking #graduaterecruitment

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An exciting semester teaching the MBA "Capital Markets" course at The Wharton School has wrapped up! Each session was a deep dive into the complexities of “Capital Markets”, covering diverse topics such as ETFs & mutual funds, different forms of corporate debt (bonds, syndicated loans, commercial paper, credit lines), market making, and securitization. We were fortunate to host distinguished guest speakers who shared invaluable insights on corporate arbitrage and private credit. A huge thank you to all my students for your active participation and insightful discussions. I’m eager to see how you all will shape the future of finance. Let’s keep in touch! Finance at Wharton #MBA #CapitalMarkets

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I am excited to share that I have completed JPMorgan Chase's Investment Banking program on @Forage! During this simulation, I: * Identified an ideal M&A target for a client based on an assessment of their strategic and financial criteria. * Constructed a DCF model to calculate the valuation of the M&A target and adjusted the model to account for a competitor bid and supply chain interruption. * Created a 2-pager for the client containing a company profile and summary of #InvestmentBanking #Finance #MergersandAcquisitions #DCF #FinancialModeling

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Understanding LBO modeling is crucial for anyone entering #PrivateEquity. Our latest micro guide breaks down the essentials of a basic LBO modeling test and offers actionable tips to help you ace your next interview. Interested in more detailed strategies and the complete interview guide? DM us today! #LBOModeling #CareerDevelopment #InterviewTips

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After this semester, those of you embarking on finance internships may be asked to work on a discounted cashflow valuation (DCF) of a firm. Besides the index and date range used to calculate beta, one of the most sensitive inputs to a DCF is the Equity Risk Premium. To prepare for possible questions from your MDs and/or clients on where you sourced ERP and how you calculated it, the CFA Institute partnered with Equity Risk Premium luminary Roger Ibbotson to build an 18-minute masterclass video and quiz. This will better equip you to answer these questions and run thoughtful valuation sensitivity analyses. The link is below, and there is an 8-question quiz at the end.

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