Private Equity Name Change

Should Private Equity Change Its Name?

There's no question that the private equity industry is changing following the credit crisis, but is a name change in order?  David Rubenstein of Carlyle Group has proposed "change capital" or "value-added equity."  The buyout industry has slowly moved away from the term "leveraged buyout" presumably after the financial crisis has been at least partly attributed to over-leveraged investment firms.

Now, with a greater push toward transparency, "private" isn't exactly an ideal association.  If private equity firms hope to adapt to the evolving market and changing public perception it has to be more than a surface makeover.

BreakingViews has a couple name suggestions to add:

"Underwater equity," for instance. The historical record of the private equity business is pretty good. The better firms have delivered high returns for pension funds, college endowments and other investors.

Or how about "fee-squared capital?" Private equity firms may make money investors, but not before raking off plenty themselves. Rubenstein, for instance, was recently ranked at number 123 on the Forbes 400 list of the richest Americans.

Or just maybe "Pupa equity." It sounds like something leading to a transformation. But it stands for "private until public again." Buyout firms like to tout the value of taking a company off the public market.  Source

Popular private equity articles:

1. Private Equity Tracker Tool
2. Alternative Investment Jobs
   
3. Career Guide
   
4. Service Provider Directory
5. Private Equity Associate
   

Tags: private equity name, leveraged buyout, leveraged buyouts, buyout industry, industry name, what is private equity, private equity name change, lbo, buyout name, name of private equity

Link to This Resource: Private Equity Name Change

http://privateequityblogger.com/2009/10/private-equity-name-change.html