If you have been planning to make the move into the Private Equity space, your probably wondering “How can you get a Job in Private Equity?” Right? Well this post is all for you!
I imagine many of you who visit this Post. Are currently working as an associate at a large New York Bank or Financial Institution? Or maybe your a broke college student that just finished earning your MBA and your wanting to get in the door for Private Equity? Great news for you. What I am about to share with you. Comes from experienced Private Equity Partners and Professionals who have been there and done that! So let me introduce you to a Youtube Channel I have been watching on this subject. It’s that good!
I need to introduce Mr. Peter Lynch. Who is Peter Lynch?
According to his website “A Simple Model”, Peter Lynch, is previously a founding member of the investment team at Hilltop Opportunity Partners (“HOP”), a merchant banking business launched by Dallas-based Hilltop Holdings Inc. (NYSE: HTH). Before joining HOP, I spent 8 years working for Argenta Partners, a private equity firm focused on control-only equity investments. From 1989 through 2016 Argenta achieved a cumulative annual internal rate of return for all invested limited partner funds of 27% net of GP carried interest and fees. Prior to that, I worked with the M&A team at Rabobank International in New York City, and with JPMorgan in Buenos Aires, Argentina and in Santiago, Chile. To prepare myself for the professional world I attended the University of Pennsylvania.
To drive home how important it is to get your foot in the door for Private Equity? I would highly suggest you watch this One on One interview between Peter and his friend Brett. Brett is a Partner of a Private Equity firm, finished his MBA at Columbia and has risen in the Partnership of his own private equity firm. Watch the video and take notes to gain an edge on “How to get a Job in Private Equity.”
In this video below you will learn a few things and “How to’s”
-Develop a network for getting in the Door.
-Follow Up on past opportunities while simultaneously developing a relationship.
-Fast tracking your way to succeeding in the Private Equity Space.
-What you need to commit to and how to make things happen for your interviews.
To learn more about Private Equity? Please visit Mr. Lynch’s Youtube Channel (CLICK HERE!)
Take it from the Private Equity Pro’s who have worked and risen in Private Equity. this. The video interview below is a must watch, if your wanting to learn “How to get a Job in Private Equity?”
I do hope you enjoyed this interview as much as I did. This entire interview was fantastic.
In conclusion please be sure to go check out Mr. Lynch’s website all about Private Equity “A Simple Model” I have to include the brilliant training Mr. Lynch offers and teach’s on his Website. Its a training website for Financial Professionals in Private Equity.
Thanks for coming by, I hope this brings you incredible insight and value like it did for me.
If you are a Entrepreneur, Accountant, Tax Attorney, Businessman or Wealthy Individual you already likely know what the 6 Assets you should list on your Financial Statement? Great! But if you don’t know? Maybe this is an article you should read. Because I am going to dive in and share what these 6 Asset classes are?
The six asset classes you want to include on your personal Financial Statement is not only Real Estate property income. But it’s also other income streams like Stocks, Bonds, and definitely NOT your home. We will dive more into this later. You will want to stay tuned because I am preparing you to become a Financially Literate confident business player.
Ok So I appreciate you showing up and reading my Blog post, I do believe I am beginning to have a few heavy hitters from Wall Street read from JP Morgan. I appreciate you guys. 100% And I Thank you. So back to business here. What are the 6 types of Assets Accountants and Business Personalities list on their personal Financial Statement?
Let’s start with an activity as we dive deeper into this thought of what is the six Assets a business individual needs to list on their Financial Statement? And by the way when you finally have enough money and assets to fill out a Financial Statement that day when you see it take shape is liberating. Absolutely. If your just realizing one day that you Made a Million Dollars in one year? This video by Patrick Bet-David is for you. Watch It!
Ok let’s get back to Asset’s. What are the Six Assets types you should list on your Financial Statement?
Bank Accounts
Bank Accounts mean your Personal Bank Accounts, not your Company Bank Accounts. It should go without saying that Commingling Bank Accounts with your Company’s money and Personal Money should never happen. I hope I don’t have to explain. It’s just bad for business. Capeche? Great Moving on.
2. Stocks
Do you have Stocks in the S&P or an Account with Charles Schwab or Edward Jones? Or even Robinhood? Then you will want to individually list each in Subsections on your Financial Statement. I hope your learning this is the Big Leagues.
3. Receivables
If your a business owner or you have personally loaned money out to your Community your going to want to list Receivables. To take this definition a bit further and be more politically correct with the Accountants who will read this. I grabbed this definition from a reputable source online. Receivables is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset. (R) is any amount of money owed by customers for purchases made on credit.
4. Real Estate
Ok this one could be tricky for most who are out there and do not have an Accounting Background. But when your listing your Real Estate assets on your Financial Statement you need to list them correctly. What do I mean by this? We want you to list your Real Estate Assets in a selected manor. Meaning take the Fair Market Value of your Real Estate Asset and write this number down. Now make sure you do not include the sum of the Mortgage you still owe on the Asset or Property. Make Sense? Ok Good! Speaking of Real Estate I want you to go check out this Madman named Ben Mallah.
Ben Mallah’s Youtube channel all about Real Estate is surely to entertain you with how crazy it is. LOL Here is a video from his Channel. Between you and me, I have told Ben several times how much I appreciate his crazy Youtube channel and him as a Investor. He is a solid Big Loveable Bear! LOL Ben taught me personally about 1031 Exchanges and Deferred taxes. These topics will be a post all on it’s own.
And for our last 2 Asset type’s you should list on your Financial Statement? Drum Roll……!
5. BOND’s
It should go without saying you should list your Bond assets on your Financial Statement. After all it is a legitimate Investment Asset. What is the proper definition of a Bond? I grabbed this online and this should help with describing this asset class. Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debt holders.
If you need to brush up on the How the Bond Market Moves and Operates? Please be sure to check out my former post on the subject. Here!
6. Business Value
When sharing this Asset type on your Financial Statement you should consider that you want to share the (NET) Value of your Business. What you listed on your Tax returns. NOT what you think it’s worth. To many business owners I meet have a value that is unrealistic. And fail to consider thier EBITDA and other costs. It becomes a big mess in the end and certainly lead you down to having unrealistic expectations. Be honest and be straight about your Busienss Value. That’s the smart play.
What is the definition of Business Value? It is the standard value measure used in business valuation. A Partner with PWC shared with me today, business value is the entire value of the business; the total sum of all tangible and intangible elements. Examples of tangible elements include monetary assets, stockholder equity, fixtures, and utility.
In conclusion you should have picked up some good information from today’s Article and Post. Generally speaking if you look at the Cash flow, and asset patterns on your Financial statement and the Assets you list on this Accounting form you can see where your lacking and where you should add a little value of shore up weaknesses. Thank you so much for reading and IF you have any questions or Requests? Please email me at JamesonDocSharp@Gmail.com and please tell me if I am missing the mark or really making a difference? I love helping others in Business. In fact with so many people who did not help me and blew me off? I feel it’s my duty to be open to helping others.
Thanks everyone Take Care – Please Comment, Like, and Share. And I will catch you on the next artcle.
Edward Segal for inviting me as Sr. Policy Advisor in the #Kansas House of Rep. Who knew the Good Senator Bob Dole as a Jr. Political personality.
And as a fellow Veteran, and Conservative from the Sunflower State of Kansas, I shared a #leadership lesson we all can take from the good Senator.
Excerpt from today’s article…..
March Forward
Jameson Sharp is a former senior policy advisor in the Kansas House of Representatives and now an investment group partner at Neptune Capital. He observed that, “Bob Dole’s heroism and leadership to serve his fellow Americans did not stop on the battlefield of World War II. It continued onto the Senate and onto when he ran for President of the United States.
“Every business executive in Corporate America could certainly take this single important leadership lesson and put it to work right away. And that lesson is to keep marching forward through the fear, uncertainty and the painful result of defeat. Because on the other side is what we call personal growth.”
I learned about the Bond Market Today and now I must share what the Bond market is and how the Bond Market operates. Questions that come up about the current Bond Markets? Is all this Cash Debt toxic? Will Interest rates be going up? How many Companies were Downgraded in 2020? Since this post will probably be very dry and boring to most who read about Wall Street? I might as well spice it up with a little flavor. LOL I must remember a Hilarious Jewish Comedian whom I literally Idolized as a young man and still love to this day. “Rodney “No Respect” Dangerfield” The king of one liners. LOL
Rodney Dangerfield was born Jacob Rodney Cohen in the Village of Babylon, in Suffolk County, Long Island, New York, on November 22, 1921. Here is a one liner from Mr. Dangerfield to get you in the mood of talking big Money and Big Debt in the Bond Market. “Sir. I talked to your wife today and I must share I really don’t like you.” Rodney respond’s “Good! Great!! Congratulations….I don’t like myself sometimes. You can keep her!!!” Cue the symbols background noise! LOL Oh, By the way! I would love to take this opportunity to share Happy Hanukkah with everyone on this last day of the celebration.
I must share it is really fantastic to have Sidley & Austin associates here on location. And especially for these Attorneys being my very own Professors or better yet personal tutors. Since I am apart of the fabric here now, I must share with them a little something I learned while serving in the Military. As a type of affection and camaraderie I developed incredibly creative nicknames for each professor. Interestingly I was assured anything I do will be used against me. All things considered. I am happy to report. I will be pushing my luck with these younger Associates.
Let’s get started. I assume most professional writers who are reading this will CRINGE!!! LOL But since this blog is written by a real business guy and not a Professional writer some trade offs must happen.
What is the Bond Market?
If I am being transparent most people have no idea what the Bond market is and also that it is shrouded in mystery. It really isn’t that complicated. The Bond market is comparatively like the Stock market but it’s for Corporate Fortune 500 Companies. Generally Wall Street has 2 markets. The Stock Market and the other side “The Bond Market”. Most fortune 500 Companies gain access to the Bond market and borrow Cash from this Market that is similar to the Stock Market. Individual investors Bonds in smaller amounts from Big Companies. And these individuals are issued interest payments called coupon’s. Currently the Bond Market has been estimated at a staggering and dangerous 11 trillion dollars in Debt. This debt all belongs to corporate America.
How the Bond Market Functions?
Experts all say the Corporate Bond market is hanging on by a thin string. The reason is likely that super low Interest rates left over from the 2008 Financial Crisis is likely the reason. Made it very easy for Companies to borrow cheap money. Experts also believe the next Economic Crisis and collapse could result from the Bond market itself. I guess we will hopefully avoid catastrophe. The Federal Reserve Chairman has publicly stated they do keep an eye on the Bond Markets activity.
What are the two Bond Types?
It is said that some of the most influential Fortune 500 Companies like Kraft Hienz, Ford, and Macy’s are already junk bond status and currently issuing IOU’s to Bond holders. Meaning they are having trouble paying. Junk Bond Status means they are the riskiest types of bonds. And that these Bond Issuers have failed in the past to pay their bond coupon holders. Meaning they have defaulted. Which really begs the simple question. “How long can Corporate America’s Junk Bond Defaulters continue to do this circle of using debt for the Companies Operations with no growth?
What are two types of Grades for Companies Issuing Bond’s
Investment Grade Bonds – These are the highest rated Bond Types
High Yield Bond’s – Are considered Bonds that have been downgraded because of past default. “JUNK BOND’S”
Please do watch Investing with Rose Youtube Channel. It’s fantastic. Here is a video that explains the Bond Market and Investing 101 Basics.
I would love for you to imagine we are standing on a plateau with a cliff lookind down into the Grand Canyon. This drop-off the cliff represents the fall a company from defaulting on their debt or coupon or interest payments they must make to bond holders. Once a company falls off the cliff. They are downgraded to Junk Bond high risk status. CNBC reports that right now there are literally hundreds of companies that are on the cliff of Default from the Markets low interest rates being downgraded to Higher Rates. When this happens all these Investment Grade Bonds will be forced off the cliff. And be downgraded to Junk Bond’s if they can not pay their Bond Holders payments. Once a company goes over the cliff they are in trouble. I hope that makes sense? Good.
There is a ton of pressure on Asset Managers to sell the Bonds which cross over to Junk Bonds and fall off the cliff.
Fallen Angels = Any company in the Bond Market that get’s downgraded by rating companies.
Will Interest rates be going up soon? If Interest rates do go up and they eventually will, the economy will turn worse than the Great Depression is what I keep hearing. I guess we will see.
It was reported that over 50 Large Fortune 500 Companies were downgraded to Junk Bond Status in 2020. That is really scary to think about.
Back to the Associates who helped me understand the Bond Market today.
Back to my substitute Bond Market Professors. There are 2 associates and one Partner from a very well known law firm in Chicago. Now on to the nicknames I have given them in an attempt to be humorous with these very serious personalities.
I would like to take this opportunity to Thank my new Professors. They are rockstar Transaction Attorneys from a very well known Transaction Services Law Firm Sidley & Austin. It’s honestly very generous of my good Friend who has arranged this education and experience being around these Attorneys.
I gave my new professors 3 Nicknames. Because in all honesty when you serve in small teams in the Military you become use to working as a team and along the way you will earn a nickname of some sort. That is the history of creating nicknames for people you work closely with.
The Big Partner of this Firm and has been the head honcho of this operation is Nicknamed “Professor Debt Collector” In all likely hood if your a company president and you receive a letter from this Partner? It’s likely your going to pay. So after hearing a few stories from this Law Firm Partner. I quickly assigned him this nickname.
Senior Associate Mr. X – is usually the lead on transactions for this Law Firm and is great about covering all his bases and researching who you are. LOL In the Holiday spirit of him not liking Holiday Decor or Christmas. We shall give this Professor the Moniker “Professor Grinch!” It seemed fitting. Since his Kids loved the idea. When asked if he agree’s with his new nickname “Professor Grinch” Snarled at me and commented…. “You do not have the right to give me such names”. Sharing a evil sinister laugh while walking away.
Then we have the Junior Associate Attorney & Professor who has been at my side this entire time. She is fantastically generous and could honestly make a Grumpy Bear laugh. So with this information she is able to explain the markets with precise accuracy and adding political scope. “Which I love by the way.” We gave her the Name of Madam Secretary. Which was fitting given her personality.
Thank you for reading this Post. I do recognize I will not ever be a professor. But at least I can bring a smile to someone who needs a little entertainment while reading about business which clearly can be boring.
It seems more and more Business Journalists and Reporters/Writers are asking for my Expert Opinion as a Source. Business Mergers and Acquisitions, Investments and Analyzing the Markets future and current state is a interesting subject.
Thank you for the privilege to look over the Horizon in business and provide an Opinion of what comes next.
