Private Equity Impact on Jobs

Private equity funds take control of underperforming companies and restructuring and reforming the operations, and invest capital into healthy businesses for greater expansion. So, in theory, private equity helps create jobs. A recent study tested how private equity effects jobs. The study followed 42 large companies acquired by 8 major private equity firms from 2002-2005 and found that after initial job losses, the companies were able to exceed the initial job losses and relative rates of job gains their competitors within two years of the takeover. The results suggest that private equity acquisitions create more jobs:

• The combined worldwide workforce of the 42 firms grew 8.4%.
• U.S. domestic jobs in private equity-backed firms increased 13.3%, much higher than the 5.5% increase for all U.S. businesses.
• Non-manufacturing companies backed by private equity expanded total employment by 8.4%
• Private equity-backed manufacturing firms had the highest gains with a worldwide employment increase of 8.6%

Click here to download the full report.

Link to This Resource: Private Equity Impact on Jobs

http://privateequityblogger.com/2008/06/private-equity-impact-on-jobs.html

Private Equity Starting Salary

Headhunter Talks of Private Equity Starting Salaries

Private equity firms are in a competition with Wall Street to offer top salaries for top talent. With all the money private equity firms reaped in the boom years, buyout recruiters had a lot of money to recruit with. Private equity headhunter, Brian Korb, talks about the huge starting salaries being offered.

From CNBC: "Korb said private equity is able to attract the cream of the crop – On average a new recruit who goes to a private equity firm receives $450,000 in total compensation. That compares with $300,000 in total compensation for Wall Street.

And then there’s the bonus – at private equity you can expect $250,000 your first year, while Wall Street pays a measly $40,000 - $60,000"

Tags: buyout starting salary, private equity salary, private equity starting salary, private equity compensation, private equity analyst salary

Link to This Resource: Private Equity Starting Salary

http://privateequityblogger.com/2006/12/private-equity-starting-salary.html

Private Equity Lobbies Against Taxes

The chief trade group for private equity firms has spent $740,000 in the first quarter of 2008 lobbying against proposals that raise taxes on buyout firms and executives.

The group, Private Equity Council, includes major private equity players: Blackstone Group, LP, the Carlyle Group, TPG Capital and Bain Capital Partners. The group worked to prevent legislation that would change taxes on private equity partnerships. Private equity and hedge fund groups worked together to stop another proposal that would raise taxes on the share of investment profits received by managers to as high as 35 percent. (Source: Forbes)

Link to This Resource: Private Equity Lobbies Against Taxes

http://privateequityblogger.com/2008/06/private-equity-lobbies-against-taxes.html