US Private Equity firms recognize how branding draws & compounds multi-billion $ valuations

In 1/15, the Wall Street Journal reported on how US and British private equity firms differ. American buy-out firms profit 2 ways from funds with an average lifespan of 10 years;

(a) profit from dealflow

(b) building value of brand

The latter makes it easier to raise large sums of capital (faster) by becoming publicly-traded.

Both British and US P/E firm’s are the same when it comes to charging at least 2x;

(a) annual management fees: 1 to 2%

(b) profit-margin commission; 20%

Four big publicly-traded US P/E firms are;

(a) KKR & Co.

(b) Carlyle Group

(c) Apollo Global

(d) Blackstone (current valuation is $284 billion)

The British P/E firm in the comparison was privately-owned Charter Capital Partners LLP ; considered one of London’s most prestigious P/E firms in business since 1934. The firm’s valuations are reportedly as high as $465 million. Funds raised in 2006 were $4 billion euro and the last fund raise in 2009 delivered a 16.7% rate of return. In 1/15, it’s new fund raise goal is $3 billion euros.

In 2010, we reported on how image branding attracts VC using mobile media;

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