The Jon Moulton Charity Trust, which applies investment principles to clinical trials funding, has backed nearly 200 pieces of research. Marc Mullen speaks to Moulton and the trust’s technical specialist, Dr Helen Critchley, to get under the skin of the operation.
What are the options when private equity managers need to close a fund?
There are a lot more funds coming to the end of their terms than there used to be. There are, of course, lots more funds than there were in prior times and portfolio company exits are often later than they used to be.
Dealmaking today is more about PE managers contracting outsourced services rather than the face-to-face world of old
In the 1980s when I started in the LBO game the private equity houses did pretty well all of the negotiation, due diligence, structuring and financing and tax work involved in a transaction themselves. Frequently, post-acquisition the only non-executive director would be a staff member of the private equity fund.
How the private equity world is reacting to Trump’s new rules
I hardly dare write on the subject of the Trump Presidency. Before the ink on my printer is dry, good can become bad and possibly back again, shortly thereafter.
Enterprise valuation — is it a science or something less precise?
If you were able to go back to the early years of my career, shares in UK public companies were largely valued on the dividend yield and on the ratio of post-tax profits to dividends paid — dividend cover — and these were the primary ratios used in valuation. The higher the cover, the higher the multiple of dividend (and the lower the yield) used to arrive at a share price. There was a simple logic in this. Shares were principally viewed as sources of income and the safer the income the lower the yieldrequired. Stockbrokers were not mathematical geniuses, and they happily used yield and cover to generate a price target for shares. The defects in this simple model are rather obvious to a modern reader.
What trends will 2025 bring for the private equity industry?
The big trends of 2024 in the private equity world were easily spotted.
First of all, the public markets (especially in the UK) were in retreat. The AIM market has horribly declined for several years. This, increasingly, is also true of the lower market capitalisations on the Main Market where in 2024 around 90 companies came off market and only about 20 joined. The only really buoyant activity was lots of take-privates and a few migrations of ambitious companies to better listing geographies.
So private equity owns more and more. Good for our readers.
The public markets have responded too slowly to effectively counter this. Change has been grudging and hedged with rules of unnecessary complexity.
Read Jon Moulton’s insightful analysis and comments about the markets…
Healthy outcomes
The Jon Moulton Charity Trust, which applies investment principles to clinical trials funding, has backed nearly 200 pieces of research. Marc Mullen speaks to Moulton and the trust’s technical specialist, Dr Helen Critchley, to get under the skin of the operation.
Employees benefit
Employee-owned companies are becoming increasingly fashionable. Jon Moulton sees the pitfalls.
Post-acquisition truths
When is an EBITDA adjustment warranted? Never mind that – the key thing is being aware of what tweaks have been made.
Read all about it
A listing on AIM is great news, but admission documents miss the point and risk stifling investment.
Tales of the unexpected
How to deal with the US administration’s tariffs is a tough question, particularly when it’s hard to understand the logic that’s underpinning it.
Land of the free?
Disruption can prove fruitful for dealmakers – but too much is another matter.
Freedom to comply
Due diligence is forever evolving, but President Trump and artificial intelligence mean providers need to be very careful about scope.
Owners without a cause?
Genuinely re-empowering shareholders is key to rejuvenating investor enthusiasm for UK public markets.
What are the options when private equity managers need to close a fund?
There are a lot more funds coming to the end of their terms than there used to be. There are, of course, lots more funds than there were in prior times and portfolio company exits are often later than they used to be.
Dealmaking today is more about PE managers contracting outsourced services rather than the face-to-face world of old
In the 1980s when I started in the LBO game the private equity houses did pretty well all of the negotiation, due diligence, structuring and financing and tax work involved in a transaction themselves. Frequently, post-acquisition the only non-executive director would be a staff member of the private equity fund.
The truth and nothing but…is a fine sounding maxim but can it apply to the grey areas of business?
The rewards available in private equity are very substantial so the temptation to be dishonest is all too obvious.
The demise of the US corrupt practices act might have some unintended consequences
Now the US has changed the game, so — hypothetically — a North Amercian aerospace company could offer bribes whereas British Aerospace could not.
Despite good intentions, there are solid reasons why the Mansion House Accord may not deliver a large pipeline of capital
'The Accord is not going to make that big a difference in the next few years — even assuming the “critical enablers” etc come into existence’
How the private equity world is reacting to Trump’s new rules
I hardly dare write on the subject of the Trump Presidency. Before the ink on my printer is dry, good can become bad and possibly back again, shortly thereafter.
Enterprise valuation — is it a science or something less precise?
If you were able to go back to the early years of my career, shares in UK public companies were largely valued on the dividend yield and on the ratio of post-tax profits to dividends paid — dividend cover — and these were the primary ratios used in valuation. The higher the cover, the higher the multiple of dividend (and the lower the yield) used to arrive at a share price. There was a simple logic in this. Shares were principally viewed as sources of income and the safer the income the lower the yieldrequired. Stockbrokers were not mathematical geniuses, and they happily used yield and cover to generate a price target for shares. The defects in this simple model are rather obvious to a modern reader.
What trends will 2025 bring for the private equity industry?
The big trends of 2024 in the private equity world were easily spotted.
First of all, the public markets (especially in the UK) were in retreat. The AIM market has horribly declined for several years. This, increasingly, is also true of the lower market capitalisations on the Main Market where in 2024 around 90 companies came off market and only about 20 joined. The only really buoyant activity was lots of take-privates and a few migrations of ambitious companies to better listing geographies.
So private equity owns more and more. Good for our readers.
The public markets have responded too slowly to effectively counter this. Change has been grudging and hedged with rules of unnecessary complexity.