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2011
What’s going on with private equity?
Jonathan Alpert:
there’s an enormous amount of activity that started late last year and has
continued on to this year. After 2008-2009, when these companies raised billions of dollars and
then couldn’t and wouldn’t invest them, activities picked up enormously. they’re buying companies,
selling companies, and competing against strategic buyers; and the market has picked up enormously.
Are there any sectors that are particularly hotter than others?
the obvious sector is technology and the internet; we all read every day about Facebook, myspace,
Xanga, and the little technology companies—everyone is playing there. But in consumer products,
there has always been activity. there was activity in 2008-2009. it was a bit more difficult, but there
was activity there; that has picked up, and there are lots of transactions. there is a lot of selling, a lot
of buying. Private equity firms have kept their portfolios on the sidelines. they are now selling and
going after new companies; there’s a great deal of activity.
That’s exciting because we always hear about tech bubbles doing this, but you’ve said that
consistently, even through the down economy, consumer products are being bought and sold.
Absolutely.
Let’s stay in that vein and focus on mid-cap companies, publicly-held, privately-held,
entrepreneurial-owned companies, and private equity-owned companies. Operationally
and strategically, how are they different today on a company level?
on a company level, entrepreneurial and mid-cap, privately-owned companies all operate with
small teams, and are cross-functional, trying to drive growth. the publicly-owned company has a
broader time horizon—they can afford to wait next year. A private equity company is on a short
lease. they have a three-to-five-year time horizon. they have narrowly focused finance objectives.
they’ve got potential debt, covenants, and restrictions. they’re racing down the road, but it’s a lot
narrower for private companies. A public company has financial objectives and the outside world
looking at them. that’s a whole unique spotlight, and it takes the focus off different things and
keeps the company driving, but it’s driving toward the bottom line.
Jonathan Alpert reflects on CFOs in a private equity world.
Written by Lorenz Capalad
Interview by Andrew Zezas
Master ofMany
A
J
ONATHAN
A
LPERT
is the former CFo of Beefeaters, inc. (dba Petrapport), world Gourmet
marketing LLC (dba sensible Portions), and Apple & eve LLC, as well as, his having led JA & Associates.
He is a member of the board of directors of the New Jersey chapter of Financial executives international
(Fei) and is involved in other finance executive and business organizations. Alpert recently appeared
in a CFo studio interview hosted by Andrew Zezas.