Private Equity Investment in Intangible Assets…

Michael D. Moberly , Principal, Founder, kpstrat

A business blog where leadership attention converges with business things intangible!

Let me respectfully remind readers, today, and for the foreseeable future (irreversible economic fact, business development + operation reality) 80+/-% of most businesses value, sources of revenue, competitiveness, and sustainability lie in – emerge directly from business things intangible,

  • ala various forms, contexts, and applications of intellectual, structural, and relationship capital.

Accordingly, large – growing percentages of business operations globally are intangible asset intensive and dependent

There should be little, if any doubt argument among business leadership and prospective investors, that mitigating risk(s) to business things intangible (the investment target) is obliged to recognizereflect,

  • the evolving – emerging global, not solely national views relative to, what, how much, where, why, and when investing + investments are prudent relative to,
  • views that investing + investments have become variously more sensitive to environmental, social, and governance (political) issues in play, insofar as presuming an exit strategy, and
  • either may translate @ some point, @ keystroke speed as a new – different focus with respect to projected – aspired investment outcome, e.g., the prospect (expectation, probability) of lucrative ROI may not be wholly sufficient enticement for investment relative to (potential) adverse reactions to/for investors, not inconceivably, may be on-the-horizon.

While the performance of any particular investment will not likely diminish as a primary factor, (nor should there be an expectation it will), there are various signals – indicators now in play, that investment performance, standing alone, may not be the only factor for invest – don’t invest decisions.

  • “it’s not challenging to recognize there could be a (growing) willingness – receptivity to sacrifice some investment performance for investing in a company – project that functions with good governance and good ethics.” (Attributed to Gerald O’Hara, an analyst at Jefferies Financial Group Inc.)

To be sure, there should be no expectation that investors may – will fundamentally alter (as a potential tradeoff to the above) their connections to and relationships with private equity funds (investments) which typically ‘lock up capital for years in advance.’

However, the intangibles of not recognizingfactoring either for (a.) the investor, ala personal – professional reputation risk/harm, and (b.) investment performance + outcome, should probably enter the invest – don’t invest decision.


Popular Posts

Divi Real Estate Agent | Luxury Properties


1234 Divi St. #1000, San Francisco, CA 94220

Phone Number

(255) 352-6258

Business Hours

24/ 7 / 365

Sign up to get latest news & Listings:

Do you need some help?

Vivamus eleifend mattis eu faucibus at felis eget. Tincidunt at ut etiam turpis consectetur euismod. Ullamcorper aenean sem sceleris que sed vel facilisi netus ut. Pharetra vitae sed ut sed sit pharetra sed. Sit sollicitudin potenti laoreet auctor non nunc. Quam viverra commodo vel adipiscing tortor ultricies.
Copyright © 2024 | Privacy Policy
Divi – Real Estate Agent