Week 2 – Day1
BTAP Partners, Paul TODALGI
The first interesting point we learned was that the CE region is not known in US and this can create opportunities to specialist from CE regionto start financial connections with the states
Paul shared detailed information about funds. That it is a legal entity and a pool of securities.The business model of funds is also different than regular financial institutes: No fixed employees, some expenses are paid only like management fee to companies and investment managers from 0,5 to 2%. Performance Model is based on 2 / 20 model. 2% of assets paid / 20% of net absolute returns paid to investment manager team.
Management of Portfolios requires consistent follow up. For example every morning portfolio management teams need to define strategies before the stock exchange starts.
We discussed also the difference between traders and executers. Traders are searching and finding the papers, companies to invest, executers are finalizing the investment. One more information we learned was the difference ling/short and mutual funds: Long funds are planned to sell in longer period, short funds in shorter period and with Mutual funds its not allowed to short processing and leveraging.
Finally innovation is still coming into finance. In financial sector social network and insider informations are critical and even in Fintech creating ecosystem is crucial. Final remark: FIND TOPICS WHICH MOTIVATES YOU, DON’T WAIT SOMEBODY TO DISCOVER YOU.
It was one of the most interesting field trips. We learned the insider information of a large scale investment company. They have 80 Bio USD assets, they target to have return of 20%. The key for that is to find ventures in the early stage. They acquire 25-40% of companies. The companies they acquire they sell in 5 years.(sometimes in 9-10 years). GA is not investing im companies smaller than 500 Mio USD.. Size of frirms are in average 17-20 bio USD. They invest 125 Mio per company and deal yearly with new 12-15 companies. As mentioned target is to have return of 20% which means double the investment return in 5 years.
They ae geographically spread as well like NYC, London, Munich, Mumbai, HK, Beijing. In sectors they invest in Financial services, Healthcare, Internet & Tech, Business services, Consumer companies.They divide their teams by function into 2: Investment community and portfolio community which communicate regularly by videp meetings worldwide.
Independent consultant in IT services and cloud service creation. He works with different countries (Hungary, South Africa, etc..) and sectors like Magyar Telecom and governments.
He built his network and works mainly as subcontractor for bigger IT companies.Being boutique consultant has certain advantages like accessing people, experience, easier to get&stay with the customer.
Trick of trade:
What you will do / when you will do / whst do you need from the customer / contractual agreement
And to manage cash flow:
Never undersell yourself / always know the profitability of each gig / plan engagaements carefully / always use milestones in the contract and link with payments / do not customer payments slide / and remember: customer needs you
ERNST and YOUNG
Ernst and Young was the most important visit as well.Their growth is incredible in the last 10 years. 200k headcount, 22k recruitment plan for 2015.
The new CEO set a vision of 2020: Main pillars: Focus on winning in the market / highest performing teams / strengthen global, empower local / exceptional client services and mainly building a better working world.
They look for smart, nice and driven people. They use double headcount / half time load philosophy to serve customers fast and efficient.
All 3 4 presenters and were passionate about their job and ownership of their roles is amazing. This shows the main difference between CE and USA working culture
Private equity company defines itself not as the largest but is one of the most important private equity companies. This was may be THE BEST field trip.
Their target is to capitalize money in developing countries. They focus on SMEs: less competition, greater inventory for investment
Their criteria for companies: truly commitet to grow, ready for change and ready to give 1-2 seat in the board of directors.
According to the Z, many companies are missing strategies they have just pricing policy. They invest min 2-3 Mio but average is 5 Mio.
They are approached by companies, intermediaries, and they have stuff on the ground which is VERY CRITICAL for them
Political stability, growth, infrastructure and watching for long and deciding by taking risk.
Their suggestions for Career were realy impressive. To dream to get great job in the big financial institutions immediately is not possible. Get expertise in the developedcontries and use your local skills and create differentiation in emerging markets.
Last presentation was about smart cities which covered mainly the class of Michael Labelle: Technology , Resources.