Private Equity and Wealth Management

Irene S.

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Private Equity and Wealth Management

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Private equity, wealth management, endogenous source, stock market, strategic plan, new investment, CVC Capital Partners, University of Washington

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Abstract

Investment listing in the stock market should be considered long-term in nature and involve a high degree of risk and uncertainty. According to Alison et al. (2015), there is a need for careful consideration of all the consent information set out in the prospectus, the risks that relate to the firm's investment, and the minimal repercussions that effect changes in the exogenous source. Reflecting on the case study of the CVC Capital Partners, who postponed plans for the Amsterdam listing, I see that its exogenous source of risk and uncertainty features factors that act outside the firm's control and have a vibrant impact on company operations.

Exogenous and endogenous sources of uncertainty and risk : the postponement of getting listed in the stock market
A strategic plan for the most appropriate new investments
Three economic sectors and private equity

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[...] Journal of Investment Management. https://www.joim.com/wp-content/uploads/emember/downloads/P0520.pdf Hong, F. and Karp, L International environmental agreements with endogenous or exogenous risk. Journal of the Association of Environmental and Resource Economists, 1(3), pp.365-394. https://www.journals.uchicago.edu/doi/abs/10.1086/677940 Hulpke-Wette, M. and Buchhorn, R BMS-193884 and BMS-207940 (Bristol-Myers Squibb). Current Opinion in Investigational Drugs, 3(7), pp.1057-1061. Kaplan, S. and Beinhocker, E.D The real value of strategic planning. MIT Sloan management review. https://sloanreview.mit.edu/article/the-real-value-of-strategic-planning/ Kurz, M. and Motolese, M Endogenous uncertainty and market volatility. Economic Theory, 17, pp.497-544. https://link.springer.com/article/10.1017/S0266466601173019 Lynch, M Bank of America Corporation. A transforming word. [...]

[...] The outcome of this allocation for change is in the uncertain framework of investor sentiment. The CVC Capital Partners also face macroeconomic variations that affirm changes in global economic conditions. Some of these conditions include economic downturns and recessions that influence investor confidence and market stability. As seen in this case, the company faces economic uncertainty that arises from going public, as in its economic fluctuations, it prefers to wait for more favourable economic conditions that ensure a successful IPO. [...]

[...] Change in this inflation creates market volatility driven by factors such as geopolitical events or changes in investor sentiment. Variations on this pose a risk in CVC Capital Partners' execution. Moreover, the endogenous source of risk and uncertainty features internal factors within the firm that influence its operations, strategic verdict, and performance. Kurz & Motolese (2001, p. 501) affirm that some of the endogenous sources that comply with change as of the case study are regulatory compliance, the performance of the corporation and its internal strategy and operation before postponement. [...]

[...] For the success of the firm, the customers have to maintain a disciplined approach to capital allocation that triggers and leverages the market management settings. To ensure profitability and volatility in the market, the firm must assert financial stability and resilience, which helps in challenging market conditions. Section B Pick three economic sectors (for example, Technology, Financial Services, Real Estate, Construction and materials, Food and beverages, Pharmaceutical, Industrial Transportation, etc.) and from each sector between 3 - 10 PE-owned firms and the same number of publicly owned firms and create a similar comparison to find whether Private equity has outperformed or underperformed over the last three years. [...]

[...] The company should also integrate social, environmental, and governance considerations before postponement, which helps in portfolio management processes. According to people familiar with the matter, CVC Capital Partners should be committed to going public shortly, where it partners with ESG specialists and leverages best practices that enhance sustainability performance across all of its set portfolios. However, the company should focus on investing in digital transformation initiatives within its platform that leverage technology and data analytics, thus improving operation efficiency and daily customer engagement. [...]

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