Texas Pacific Group (TPG) and Investindustrial are both hypothesis assembles that make advantages by defending monetarily and fiscally miracle firms and leaving in the wake of comprehension their benefits. Investindustrial gives overall cutting edge game plans and cash to mid-business area associations. The fundamental mission of Investindustrial is to upgrade and add to the endeavors through an "element whole deal ownership" in the potential associations. On the other hand, TPG takes after a contrarian rationale and places assets into those testing associations that common budgetary pros are moving a long way from. A contrarian budgetary master like TPG makes regard by making unconventional hobbies in belittled associations.
1. Outline the key differences between the structure and investment philosophies of TPG and that of Investindustrial?
2. What are the pitfalls of a private equity firm managing a publicly traded company? From the perspective of a PE firm, what are the advantages of taking a publicly traded company private?
3. Fund III, which Investindustrial earlier used to invest in Ducati, was fully invested in 2007 and so Investindustrial had to use its newly raised Fund IV. Outline possible conflicts of interest in having two different funds invest in same company? What would you suggest Investindustrial do to mitigate the risks?