Private Equity 101 with Renowned Professor Robinson
By: Shelly Mittal (MBA 2023)
$8 Trillion.
That’s approximately the amount of money managed by private equity firms across the U.S. For reference, the U.S. national debt is approaching $28 Trillion (Bloomberg, 2021).
The private equity industry has never seen such rapid growth as it has in the past 12-18 months, with $288B invested in the first half (McKinsey, 2021).
Blackstone Group, Apollo Global, and KKR closed 30 percent of global deals just this year and fundraising and deal flow are at all-time highs (Bloomberg, 2021). The U.S. recently had one of the biggest leveraged buyouts in history seen with Medline for $34B.
Fuqua School of Business Professor David Robinson spoke to eager first and second year students about the "Facts or Fictions surrounding Private Equity."
Robinson explained that private equity goes beyond equity buyouts to include real estate, infrastructure, and venture capital. In a nutshell, private equity is capitalism on steroids.
Robinson then asked the packed room to think about whether it is “Venture Capital or Vulture Capital or both?”
It depends on who you ask. Incredibly, 7% of US jobs are at companies backed by VCs. By the time they mature, about one fifth of these companies are among the largest publicly traded US companies, including Robinhood, Airbnb, and Zoom.
Robinson walked students through a case study about Toys"R"Us and how private equity firms acquired and sold the company. In his course on “Venture Capital and Private Equity,” students will learn how officials and politicians are taking a closer look at the industry and how it impacts future returns.
PE 101 concluded with a discussion of Fuqua alumni's invaluable connections within the private equity industry, as well as the importance of leveraging the opportunities that private capital firms offer.
Fuqua PEVC is one of Duke University's most active student professional organizations. We provide students interested in private capital investing with information, networking, and recruiting opportunities. The PEVC Club is a growing partner in the Fuqua network and the global investing community with a track record of facilitating career opportunities, engaging with investors, and leading professional development and community initiatives.
David T. Robinson is the renowned Vander Weide Professor of Finance at Duke University's Fuqua School of Business. In addition to his appointment as a leading Research Associate at the National Bureau of Economic Research, he is an internationally recognized expert in the fields of private equity, venture capital, and entrepreneurial finance. The New York Times, The Wall Street Journal, The Financial Times, and The Economist have all featured his work.
