Investment Banking and Private Equity文档.pptVIP

* * * * * This slide further illustrates the money flow. As I mentioned previously Institutional investors and individual investors have large sums of money which they look to invest. The top row of rectangles represent the various investment types. The white boxes—cash, debt and stock securities are publicly traded securities. That means that there is an active public market for these instruments. While real estate and private assets are privately traded investments. The next row are buy-side firms that invest in these securities. Mutual funds primarily invest in public stocks and bonds, hedge funds that also invest in public bonds, stocks and even private assets. And finally there are private equity firms that invest in private companies I will cover in depth in the next few slides. One key difference between mutual finds and hedge funds its that mutual funds are more regulated and they generally take less risky positions since they get majority of they money from small individual investors. While hedge funds cater to more wealthy cliental and are exempt from many of the rules and regulations governing mutual funds, which allows them to accomplish aggressive investing goals. The government views high net worth individuals as sophisticated investors and feels that they don’t need to protect them. Although high profile hedge fund losses like Amaranth Advisors, the fund told its investors that it had lost more than $3 billion in September might lead to increased regulation for hedge funds going forward. * * * * * * * * * * * * * * * * * Irina Zilbergleyt * My Background Graduated with a Finance Major December 2002 Merrill Lynch Investment Banking Analyst (Chicago) Allied Capital Private Equity Associate Oct 2004 - Present (Chicago and New York) * Why Work in the World of Wall Street? Challenge / Responsibility Be in a position to provide advice and guidance to people whom, if you worked in a corporate setting, you would probably have no exposure to