Wharton Gladden Sheds Light on Private Equity
(Greensboro, N.C.) August 26, 2010 – Algenon Cash, managing director of Wharton Gladden & Company, lead an informative discussion on “Private Equity: 101” to kick off the autumn season of the Wharton Gladden Luncheon Series, held at the Piedmont Club in downtown Winston-Salem.
The lunch event attracted close to 100 business owners, developers, real estate brokers, local bankers, as well as city officials from the Piedmont Triad, including Greensboro City Councilman, Robbie Perkins. Though coming from different dynamics in the community most audience members hesitated to raise their hands when Cash asked “Who knows what private equity is?”
Private equity funds are created by asset managers that pool capital from high net-worth and institutional investors. The capital is then invested into a variety of asset classes – real estate, operating companies, or commodities.
Cash gently lead the audience through the basics of private equity, starting with brief background to provide a knowledgeable understanding of the impact it has long served in American economics. William Durant, the founder of General Motors, managed around $5 billion of private capital in the 1920’s.
Cash discussed how to sponsor and operate a private equity fund, select an asset class, define the method of investing, and ensure compliance with securities laws.
“The whole topic of private equity has gone from the background to Main Street,” said Cash. The recent crisis in the financial system casted light on the shadowy private equity community, and now many real estate professionals are curious as to how they can use private equity to recapitalize projects, fund new acquisitions, or take advantage of distressed opportunities.
“I knew private equity existed, but that was about it,” said Walt Kinsey, commercial real estate broker with Allied Commercial. “I feel like I jumped from kindergarten to high school with the amount of knowledge I’ve gained today,” continued Kinsey.
About Wharton Gladden & Company:
Wharton Gladden & Company is a uniquely designed boutique investment banking firm that specializes in providing strategic advisory services, underwriting, capital placement and private equity for a diversified client base that includes corporations, real estate developers, financial institutions, investors, municipalities and high net worth individuals.