Do Not Confuse Cyclical with Structural

The creator of the Buttonwood column in The Economist flew into Toronto from London to give a wide-ranging speech on the state of the world and how the economics, and investing, would play out over the next few years. Richard Cookson, now with the impressive Citi bank, treated us and scared us by explaining that in the developed world, we have too few assets for all the investment dollars to get the returns that they want. Citi is investing very carefully into the emerging markets but with the Middle East unrest, the risk costs are rising rapidly. 
As Richard says, "Egypt matters as now investors have to add higher risk to emerging markets."
My favourite nugget was Richard's elegant statement, 
"It is a cardinal error to confuse cyclical change with structural change." 
Citi's breakfast speaker series run by  Peter Charrington, CEO, North America, certainly highlighted the details of why we are in a time of great structural shifts. I'm sure Peter would welcome a call for more information. 
Contact: Leslie Bains +1 (212) 559-2216

Now Here's How to Push up Innovation

I am blown away every time I appear on BNN The Pitch by the business owners looking to raise capital. I am impressed with the sheer guts of these entrepreneurs to go on TV, pitch their business and then take a hammering from the private equity people. Their willingness to give it a go is the ability that truly sets apart the wheat from the chaff.
In this show, Matthew Thompson of Protranscript, absolutely nails his presentation and should be able to raise more money than he is seeking with his entrepreneurial drive.
 Andrew Bell introduces the panel: Rick Nathan, Managing Director, Kensington Capital Partners, Stewart Thornhill, Executive Director, Pierre L. Morrissette Institute for Entrepreneurship, Richard Ivey School of Business, Jacoline Loewen, Director of Loewen & Partners.
I apologize for the link below. I wish I could embed the video but I guess BNN wants you to go to their website. So here it is:
http://watch.bnn.ca/the-pitch/february-2011/the-pitch-february-16-2011/

Universities slow to understand private equity's importance

Slowly the universities are beginning to see that private equity is here to stay and is morphing into ever more useful formations. Useful to developing an economy chock block full of entrepreneurial businesses flourishing because they are being fed enough capital by high risk takers, not bankers.
I thought that you may be interested in a source of private equity materials. Wharton's has a new section on its website with PE articles:  Read Here.
The link was sent to me by Leah Noble, CA, JD/MBA and UWO Faculty of Law/Richard Ivey School of Business. Yes, Leah has a a CA and nearly and MBA/law degree combined and a great personality too.

Chinese treat Private Equity like Rock Stars

Watch for China to become the world's center of private equity within five to 10 years, according to David Rubenstein, co-founder of The Carlyle Group. 
Paving the way for this top ranking are strong economic growth, myriad opportunities, little competition and a mostly laissez-faire attitude towards business. The Chinese respect capitalism's power to create a good economy.
David says, "When I'm in Washington, D.C., people are barraging me, saying that I'm not paying enough taxes.... In China, people want my autograph ... private-equity professionals are like rock stars."

How to Explain Your Business Value

Stories or metaphors are easier to understand than fact laden PowerPoints. Here is an example from Mathguy on how to explain something complex to your customer.

http://www.youtube.com/watch?v=_Rl1xgT3REE