Harvard Business Review

AUGUST 5, 2014

There are, of course, individual firms that succeed in generating venture rates of return. But they are too small in size and too few in number to make up for the vast majority of funds that fail to generate attractive returns (or any returns) for investors. LPs pay VCs like asset managers, not investors.

Venture Capitalist 19

Venture Capitalist Asset Management Rate of Return Incentives 19

Harvard Business Review

APRIL 16, 2012

Politicians have claimed that retaining cash balances is hurting the global economy—even characterizing the practice as unpatriotic —and many investors have argued that excess cash rightfully should be returned to shareholders through dividend payments or share repurchases. Arguments for Strategic Cash. Facilitate Investments.

Company 15

Company Cost of Capital Finance Long-term 15

Harvard Business Review

APRIL 18, 2016

There are a variety of ways to calculate a return on investment (ROI) — net present value , internal rate of return , breakeven — but the simplest is payback period. But without returns in future years you’re not actually making anything on your investment. Finance & Accounting Article.

Payback Period 8

Payback Period Net Present Value ROI Rate of Return 8

Harvard Business Review

APRIL 30, 2015

You’ve got an idea for a new product line, a way to revamp your inventory management system, or a piece of equipment that will make your work easier. You’ll likely be asked to show that the return on the investment will be better than your company’s cost of capital. . or 11% as the discount rate. Joe Knight.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

FEBRUARY 26, 2016

They can also run into trouble syndicating later rounds of financing if other VC firms see that they are losing partners, or suspect that they are a “zombie” firm, unable to raise a subsequent fund. At larger VC funds, partners lock in high salaries from fixed management fees, regardless of their investment performance.

Due Diligence 8

Due Diligence Entrepreneur Rate of Return Long-term 8

Harvard Business Review

JANUARY 26, 2012

Bill Ackman's hedge fund Pershing Square, for example, has $9 billion in assets under management and fewer than ten investment professionals. There are parallels with the music, publishing, and movie industries where returns are still largely driven by blockbusters rather than the long tail.

Hedge 15

Hedge Disruptive Innovation Venture Capitalist Venture Funding 15

Harvard Business Review

OCTOBER 27, 2014

billion in 2013, making him the fifth highest-paid fund manager in the land. r>g: Economist Thomas Piketty’s formula for spiraling wealth inequality, in which the rate of return on capital is higher than economic growth, has its critics. Apple Finance Skill vs. luck' Icahn won that playground tussle. In 2012 it was $1.9

Hedge 8

Hedge Venture Capitalist Letter Reputation 8

Harvard Business Review

NOVEMBER 21, 2018

Higher-fee, actively managed funds lost $500 billion in assets since 2015, with much of it flowing to much lower cost passive funds (e.g. The average age of a traditional wealth management firm’s customer is in the mid 50’s. index funds). on half a billion dollars invested on the platform to date.

Real Estate 11

Real Estate Rate of Return Finance Innovation 11

Harvard Business Review

FEBRUARY 8, 2018

We believe that business-friendly candidates could win, but companies should make sure that their Mexico investments have an acceptable rate of return even under this populist scenario. When it comes to Brazil, the economy is picking up.

Market Risk 9

Market Risk Marketing Supply Chain Company 9