Reference no: EM132795851

Extracts from an article entitled" Cashed-up private equity firms on the prowl for acquisitions" by Sally Rose which appeared in "The Financial Review" on 19 January 2015 are set out below:

Quote:

International private equity giants Kohlberg Kravis Roberts and TPG, along with local players Pacific Equity Partners and Quadrant, are looking for acquisitions, with more than $6 billion of cash sitting in the local private equity industry's coffers.

Justin Reizes, the local head of KKR, said the US-based firm is looking for more opportunities in Australia and expects weakness in global markets to work to its advantage.

Strong global macro-economic themes that emerged through the end of 2014 have impacted the Australian market in a variety of ways. And because of these dynamics, we believe some unique opportunities have emerged in Australia across all of KKR's investment platforms - private equity, energy and resources, real estate and credit," Mr Reizes said. KKR's Australian investments include mining contractor Bis­Industries and a stake in financial planning business Findex.

After a frenetic 18 months for initial public offers and trade sales, the focus of local private equity ­partners is poised to shift from ­disposals to acquisitions in 2015, Australian Private Equity & Venture Capital Association chief executive Yasser El-Ansary said.

Unquote

With reference, wherever relevant, to the article:

I. Discuss the characteristics and objectives of a private equity company;

II. Who are the principal contributors of equity funds to private equity company?

III. What is the normal legal structure of a private equity company?

IV. What are the specific roles of managers of a private equity company and how are they remunerated for these roles?

V. The article refers to disposals, or exit strategies. Discuss the objectives applicable to exit strategies, including the forms of such strategies.