Author: Cattolica Investment Club

Introduction to IPOsIPO stands for Initial Public Offering meaning that shares of a private company are made available to the public for the first time through a stock issuance. In order to have an IPO the company has to satisfy some requirements by the Securities and Exchange Commissions (SEC).Going public represents a big opportunity for companies as they might be able to raise a lot of equity capital from public investors. Other than the capital perks which might allow the company to grow and expand, listed companies increase transparency and might help obtain better terms when trying to borrow funds.Historically, the first modern IPO is considered to be when the Dutch East India Company offered his shares to the public in 1602. Since the 2008 crisis there’s been a decrease…

Deal overview Alphabet, through its subsidiary Google, is in negotiations to acquire cybersecurity start-up Wiz for approximately $23 billion, potentially marking the largest acquisition in Alphabet's history. This deal could face significant antitrust scrutiny, as regulators under U.S. President Joe Biden's administration have shown resistance to large tech acquisitions, especially involving Google. Alphabet's last major acquisition was Motorola Mobility for $12.5 billion over a decade ago. The acquisition of Wiz, valued at $12 billion, would significantly bolster Alphabet's cybersecurity capabilities following its $5.4 billion acquisition of Mandiant two years ago. Wiz, headquartered in New York and led by Israeli founder and former Microsoft executive Assaf Rappaport, has raised about $2 billion from investors, including Sequoia, Thrive, and Blackstone. Wiz assists companies like Salesforce, Mars, and BMW in securing cloud programs…

INTRODUCTION Private equity investments are characterized by illiquid assets. To realize their returns, Limited Partners (LPs) and General Partners (GPs) must employ an exit strategy. This article provides a detailed analysis of the primary exit routes adopted by private equity firms.  “To make more on their investments Venture capitalist 1 need to turn illiquid stakes in private companies into realized return” Gompers and Lerner 2001 A defining feature of PE finance is the investment horizon. Limited Partners (LPs) typically commit their capital to a PE fund for a period of 10 years, with potential extensions of 1 to 3 years. This predetermined time frame forces PE firms to focus on realizing investments within the set period. This ensures that LPs receive their invested capital and a return on their investment.…