Hi In chapter 4 the core reading lists a reason for private equity investment as "where the risk profile is unsuitable for public ownership". Can someone give an example of such an unsuitable risk profile?
New technologies What about new technologies where most of the company assets are intangible? Even so, there is part of me that thinks that the 'market' should still be able to determine an appropriate price for even these. I guess most stock exchanges have tight listing criteria which these sorts of companies would struggle to meet, perhaps because of the high level of intangibles. Sorry, I am not an authority on the subject (taken it once in April 07 and FA'ed- grrr! - resit to come in 3 wks)-I'm just thinking aloud... please feel free to heckle!
A possible situation might be a brand-new company, with no past history whatsoever and where the people setting up the company themselves have no track record as company managers. This would be the case if I set up my own actuarial consultancy this afternoon!
