The fascinating history of the modern private equity industry

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The modern private equity industry has an interesting history that dates back to 1946 when the very first venture capital firms were founded. One of them was the American Research and Development Corporation and the other was J.H. Whitney & Company. For 35 years until the late 1970s, several small volumes of investments focused on private equity were recorded.

But private equity, despite its early success among relatively smaller firms on Wall Street, became dormant for quite some time. However, the start of the 1980s gave way to headlines of several major buyouts that catapulted the industry into the frontlines.

For one, the story of Jerome Kohlberg, Jr. and Henry Kravis’ effort to form Kohlberg Kravis Roberts (KKR) followed by their famous purchase of the RJR Nabisco through a leveraged buyout became an inspiration for a book and a film, Barbarians at the Gate.

Although it was not the first LBO in history, the RJR Nabisco buyout was one of the largest at the time and the most phenomenal. Unfortunately, the KKR investment did not fare that long and ended in a substantial failure. From 1979 through 1989, thousands of leveraged buyouts were executed, recording a total transaction value of more than $250 billion.

The pre-2008 and the post-2008 eras of the private equity posed new challenges and advantages for the industry. During the early years of the 2000s, the changes in the liberal US monetary policy coupled with stronger credit markets make a blockbuster and large-scale buyouts possible for successful equity firms.

The years following 2008, however, introduced a new environment for private equity investing. The global economic crisis and the credit crunch as the primary obstacles prevented firms from obtaining debt financing and finding more attractive investments.

As the economy began to show signs of improvement, private equity buyouts also started to emerge and began their slow return to the financial scene. At present, the private equity industry is a booming environment that has become more acceptable to the public. Many modern-day investment companies, including those offshore such as LOM Financial, have capitalized on this sector’s potential as a viable investment option for portfolio diversification. They mostly have a long history of facilitating private placements in both listed companies or as-yet to be listed companies.

How sustainable energy sources can fuel a more technologically advanced future

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The world has witnessed different stages of industrial revolutions that have shaped not only the advancements of the present but also the innovations of the future. In the forms of intelligent machines, high-tech machinery and more, humans have continued to discover, explore and create.

However, there’s one factor in these advancements that have been continuously exploited and undervalued: energy and its unlimited but most of the time limited sources. As the world’s resources dwindle and become scarce from overharvesting, will there still be left for the generations to come?

Luckily, there are emerging sustainable and futuristic energy sources that are starting to be adopted by even the most highly industrialized nations in the world.

Solar Energy, for instance, is one of the most promising candidates as a top sustainable energy source. While the current scope of this type of energy is still in its early stages, small solar projects have begun to reach residential communities in the form of solar panels and solar water heaters. Another industrial country like Germany, for instance, rewards its citizens who opt for solar energy.

Nuclear Power is a popular topic among experts who touch on discussions in finding the ultimate energy sources of the future. At present, it covers 14% of the planet’s consumption. Despite its risks, its potential as a carbon-free power source places its role as an important energy provider for the generations to come.

Human power may sound straight out of a sci-fi movie, but researchers from around the world are currently testing on a technology that has the potential to produce energy from human movement. For instance, engineers in the UK have developed a knee brace that readily collects electrons while running, walking, or even bending the knees.

For more about the energy sector, commodities, stock markets, and investing, read updates on LOM Financial‘s official Facebook page HERE.

The indispensable role of airports in economic growth and development

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Airports play an essential role in connecting the world – and this just one of the several reasons why every major city on the planet has invested in this infrastructure. For starters, airports don’t just move passengers, but they also help transport resources no matter where they are in the world.

Beyond its primary function of providing accessible channels to transport people from one place to another, airports also contribute to economic growth and development of its home regions. In fact, several industries benefit from and rely on the commercial aviation industry for their daily operations. Along with seaports, airports are extremely important in export and import trades.

The manufacturing and distribution sectors are heavily dependent on air travel to comply with their time-sensitive schedules. Hotel, travel, and tourism rely on airplane routes and access to transport human cargos to different parts of the world. Business people and investors can create partnerships and networks from companies or individuals who live on the other side of the globe, thanks to the availability of travel that grants them actual access to foreign markets. Especially among businessmen who make a lot of international transactions with global clients (such as LOM Financial), air travel serves paramount purpose.

The presence of airports in a particular global location greatly shapes the economic as well as social landscape of the region. Aside from making it physically accessible to investors, it promises a potential for urban development.

Just like how railroads, seaports, and highways opened a wider entrance for people, products, and services, airports provided a more efficient, faster and 24/7 mode of transport that suits the fast-paced demands of the modern era.

Most importantly, airport infrastructures contribute to a higher economic productivity as well as more dynamic mobility for the most important economic resource that every city can ever have: human capital.

Practical funding options for a financially sound retirement

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When people talk about retirement, others imagine a day at the beach, bathing in the sun, or traveling the world, savoring their well-deserved freedom. Such activities mark the beginning of a retiree’s new life, but there’s one factor that everyone seems to miss: the process of successfully planning for retirement especially when tackling the financial side of it.

So what preparations should one take into consideration when planning for their golden years? First, it’s important to find smart ways to fund your retirement. Here’s some of them:

  • Stock Market Investments

No matter what financial goal you have, investing in the stock market is always a right choice – especially if you’re still decades away from retirement. Planning for your future means looking at for at least 20-30 years of life and the long-term as well as the short-term benefits that you can get from investing and growing your stocks are the perfect vehicles to fund your retirement. If direct investment in stocks may seem complicated and laborious for you, it’s always wise to seek an expert’s help (such as offshore discretionary portfolio management with LOM Financial) or buy shares from equity mutual funds.

  • Employee-Sponsored Retirement Accounts

One example of an employee-sponsored savings account is the 401(k) plan. While it’s usually a less advantageous choice than a pension plan for a retirement fund, there are several reasons why many people still consider this a go-to option because its tax benefits as well as long-term opportunities to build a stable savings. If you’re planning to rely on your contribution plans such as the 401(k) offered an employer, then you have to know the basics of smartly converting this source of fund for retirement.

  • Social Security

Social Security can be one of your income sources after retirement in the U.S., but did you know that strategically planning your claiming options can double the rewards? Here, timing is everything. While you can already benefit from this income source as early as 62, a single year or two of claiming delays can increase the sum of these benefits.

Economic pillars of the Cayman Islands

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About 290 kilometers northwest of Jamaica and 160 kilometers south of Cuba, lies the British Overseas Territory of the Cayman Islands, one of the world’s leading offshore investment and financial services centers recognized by the biggest players in the global finance industry. The islands encompass three major regions: Little Cayman, Cayman Brac, and the Grand Cayman.

Aside from being a tax-efficient jurisdiction favored by giant multinational corporations and wealthy individuals, the Cayman Islands has a lot more to offer. Local residents are engaged in numerous industries and are all helping the region diversify into newer frontiers. Here are some of the sectors that have significantly helped boost the islands’ growing economy:

Tourism

Located in the Western Caribbean Sea, the Cayman Islands is a popular destination for international travelers. The largest island, Grand Cayman, is known for its pristine beach resorts and mesmerizing diving and snorkeling spots. On the other shores, Cayman Brac is a launch point for other activities like deep-sea fishing excursions. The smallest island, Little Cayman, is a sanctuary of diverse wildlife and is home to several endangered species such as iguanas and seabirds.

Banking

Banking in Cayman is a flourishing sector, thanks to multinational bankers that continuously rely on the region’s efficiency and client-centered policies.  Recent records reveal that there are 140 foreign banks currently operating in the Cayman Islands, and only 18 banks are domestic. Most of these banks are either branches or subsidiaries of international firms from Canada, United States, Europe, and Asia.

Insurance and Finance

The Cayman Islands is an important player in the global financial market, allowing legal and efficient transactions between the users, and their investment capital and financing providers. Thanks to its client-focused market leadership in the financial sector, the islands continue to attract new international clients from the developed world.

Three tech companies that are redefining modern living

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The dawn of technology brought forth innovations that have not only improved people’s way of life but have transformed how the world sees the future. Today, we’re witnessing an era of boundless opportunities, and that is all thanks to the game-changers, the powerful companies, and institutions that broke the limits of not only our imagination but of our perception of reality as well.

Here are some of the most influential and powerful companies that continue to imagine, innovate, and beat the odds.

  1. Facebook

With over two billion active users every month, Facebook is one of the fastest growing tech companies in the world and its influence have contributed to a global avenue where people from every part of the continent can interact with one another with a single click. Nearly a staple in most portfolios—including offshore investments—this social media giant has taken on other business ventures beyond the platform, investing in different innovations like virtual reality and augmented reality technology.

  1. Microsoft

As a resident member of the Fortune 500, Microsoft’s influence in the tech industry remains dominant even after years since it was established. Aside from the company’s massive investments in the cloud computing technology, its mission of making the world a better place by focusing most of their assets of corporate and social responsibility with two primary goals: through the power of technology, protect human rights and save the planet.

  1. Tesla

Tesla is an emerging that has been making headlines because of its visionary and oftentimes ambitious projects. Despite the early failures, this tech giant’s role in making environmentally-friendly technology available to everyone has made it one of the most important front-runners of future tech. The company focuses on different projects committed to social responsibility: solar-panel manufacturing, sustainable energy storage, to name a few.

A look into the music streaming business model

The advent of the Internet produced plenty of digital wonders, but it also put many businesses at major risk—including the music industry. Gone are the days when enjoying music can only be done by purchasing a CD (physical or downloaded) of your favorite artist or listening to the radio whenever top hits are randomly played. Illegal downloads through file-sharing sites dramatically reduced sales and many record labels, artists, and songwriters lost huge potential income. But then, Spotify and Apple Music (and a few other similar services) came into the picture and ‘saved’ the industry by creating a new business model that may actually address issues on piracy as well as help the business return to its glorious form.

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Music streaming is a relatively new form of accessing music services, which was previously dominated by radio playlists and album purchases. In this type of service, customers use the Internet to play songs based on their personal preference without the need to download the entire material. It is effectively music-on-demand, and can be played using computers or mobile devices. Of such type of business, Swedish company Spotify, seemed to have successfully built a strong following around it.

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The Spotify revenue model is based on advertising (free music streaming limited to 20 hours per month supported by advertisements) as well as paid monthly subscriptions (unlimited streaming to PC without ads or unlimited streaming to PC and mobile without ads with additional off-line listening on mobile phone). The company has signed deals with various music giants, including the Universal Music Group, Warner Music Group, and Sony Music Entertainment to fill up its library and attract more customers. Music owners earn based on their market share from total streams.

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While many customers are still considered passive listeners and mainly access Spotify under its ads-supported service, sales of paid subscriptions are growing and may soon outpace the declining purchases of music, whether downloaded or on a CD. Physical sales went downhill to 14 percent while downloads also plummeted by a double-digit percentage. Streaming offers a reliable future because the cost of a year-long subscription—around $120—is much higher than what an average consumer would spend on CDs.