Designed as an overview of the spectacular collapse of a prestigious financial institution, this case outlines the history of Barings Bank, the oldest merchant bank in London, describes how it became involved in Far East markets and how a trader in its Singapore operation, Nick Leeson, was able to run up massive losses on unauthorized dealings which led to the collapse of the bank. The case identifies areas of poor internal control, inadequate board oversight and a remuneration culture that encouraged risk taking. It looks at the role of both internal and external auditors and of the regulatory authorities.
Down under the data: LPX explores listed private equity
Summary
LPX AG, founded in 2004 by Michel Degosciu and Robin Jakob, is a leader in listed alternatives, focusing on listed private equity (LPE) and listed infrastructure. With its pioneering LPX Listed Private Equity Index series and NMX Infrastructure Index series, LPX provides essential benchmarks and innovative index-linked products used globally by asset managers. In February 2024, Michel returns from a skiing holiday, ready for a pivotal business trip to Sydney. He will meet with an investment advisory firm interested in developing new financial products based on LPX’s flagship indices, LPX50 and LPXBO. This meeting is crucial for enhancing LPX’s global market presence. Michel anticipates rigorous scrutiny from the Sydney analysts on the risk metrics and performance of LPE stocks. He plans to present a detailed analysis, showing when LPE stocks excel and underperform, integrating comprehensive risk factors for a nuanced understanding. The LPX50 Index captures the performance of the 50 largest LPE companies worldwide, while the LPXBO Index focuses on buyout strategies. Both indices have demonstrated superior long-term performance compared to the MSCI World Index, though with higher volatility. Michel's analysis reveals that LPX indices offer risk-adjusted returns comparable to the MSCI World Index. Employing the capital asset pricing model (CAPM) and a six-factor model, Michel quantifies the indices’ market risks and performance drivers, showcasing LPX’s sophisticated analytical capabilities. His goal is to demonstrate LPX’s expertise and the compelling investment potential of LPE, aiming to attract global investors and solidify LPX's reputation for future growth.
Reference
IMD-7-2583
Copyright
©2024
Copyright owner
IMD Copyright
Organization
LPX Group
Industry
Finance and Insurance, Financial Services
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Here’s what we predicted for 2024… how did we do?
Summary
Did our predictions for 2024 come true, a turbulent election year, bitcoin and CBDC, COP29 and electric cars, China, EU integration and Euro football
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Time to go green? What bonds are best for you?
Summary
Green and sustainability-linked bonds offer companies new funding to reach urgent sustainability goals. Salvatore Cantale and Barry Gavin explain how to make the most of a booming market.
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Growing beyond your skillset
Summary
Anne has recently been named the CFO of a large multinational manufacturing group. It is a big change of direction: before this, she worked as a senior consultant with a top consultancy. Her appointment stems from a long and successful relationshi...
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Why investors often overlook the next big thing - Venture Capital
Summary
Bold and unproven ideas may struggle to attract early investment, but that doesn't mean they are doomed to fail.
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Sia Houchangnia on building relationships that empower founders
Summary
In this episode of Capital Conversations, Sia Houchangnia presents a specific approach to providing effective advice and support to founders.
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IG4 Capital: Private equity with a purpose
Summary
SEPTEMBER 2023, SÃO PAULO (BRAZIL). Gustavo Buffara was painstakingly putting the finishing touches on the IG4 Private Equity Fund III presentation. Co-founded by Gustavo in 2016, IG4 Capital had grown to become a leading force in private equity in Latin America with a unique value proposition that focused on private equity special situations. With 52 professionals worldwide across seven offices (in São Paulo, London, Lima, Madrid, Bogotá, Washington, DC and Santiago), the firm was now heading to manage some $1.7 billion, with more than $1.1 billion invested in special situations over recent years. What made Gustavo particularly proud was the fact that the firm was able to operate not only under the highest sustainability standards, as an early signatory of the Principles for Responsible Investment (PRI), but also as a fully certified B Corp, a first in emerging market private equity. IG4’s portfolio companies now generated more than $2 billion of turnover with around 20,000 employees in different countries across Latin America, and many of them had achieved or were on their way to their own B Corp certifications. Could a Cerberus-inspired special situations strategy, often perceived as brutal, be adapted to a more culturally sensitive, developing-market equivalent, with clearer environmental, social and governance (ESG) integration? In other words, could “vulture capital” be turned into “culture capital”? The value proposition resonated with investors, and the track record of IG4 Funds I and II were now solid pillars upon which to build. But what else could the company do to ensure that its private equity investments in different segments, with a deep ESG toolbox, would help establish sustainable capitalism in the Latin American region? What else should it consider doing to reaffirm its ESG credentials even further?
Reference
IMD-7-2545
Copyright
©2024
Copyright owner
IMD Copyright
Organization
IG4 Capital Partners
Industry
Finance and Insurance, Private Equity
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
What pension funds could learn from Yale
Summary
Pension funds can unlock the potential of venture capital by adapting the successful endowment model, managing risks and illiquidity for long-term growth and stability.
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Entrepreneurship through acquisition: Vanessa Monestel’s search fund
Summary
GENEVA (SWITZERLAND), OCTOBER 2023. Vanessa Monestel was ecstatic. a day earlier, she had just signed the letter of intent (LOI) to acquire an Amsterdam-based fashion company. This was the culmination of her 18-month search for a company to acquir...
Reference
IMD-7-2514
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Novastone Capital Advisors
Industry
Finance and Insurance, Private Equity
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Entrepreneurship through acquisition: Sébastien Perroud and the IAR Group
Summary
GENEVA (SWITZERLAND), AUGUST 2021. There was a lot at stake for Sébastien. This was the culmination of his 18-month NCA supported search journey to find a company to acquire. Instead of a single target, he was now faced with the prospect of acquir...
Reference
IMD-7-2515
Copyright
©2024
Copyright owner
IMD Copyright
Organization
IAR Group
Industry
Finance and Insurance, Private Equity
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications