Showing posts with label Money Magnet Loewen private equity. Show all posts
Showing posts with label Money Magnet Loewen private equity. Show all posts

Private equity and the bank share of market

In the book Money Magnet, Jacoline Loewen talks about how the unthinkable does happen. Like the music industry, technology is transforming the traditional banking and public markets.
"One of my themes is that private equity is slowly talking the higher risk bank lending and redoing this relationship," says Loewen. "Instead of being only a lender, the private equity people actually get a board seat and buy inot the business. Effectively, they are now a part manager too. It can seem high stress to an owner used to a nice lifestyle business but if you are going to earn a great deal more money, perhaps you can think about it."
Here is a chart to show the beginning of the big shifts in the world economy.
Rewind to 1999 to get a glimpse of the top 20 global financial institutions (based on market capitalization). The U.S. had 11 banks listed in the top 20. UK had 4 top 20 banks. Another interesting fact, the top 20 were dispersed among only 5 countries. US banks looked pretty good.