Private equities (PE) refer to a company’s shares representing its ownership. PE firms or investment management companies provide financial backing, making investments in the private equity of other companies. They use various mechanisms for making investments, including different types of capital. Private equities provide investors with profit by obtaining capital from wealthy investments of existing companies.
Over the last five months of 2021, PE deals have significantly increased due to various factors, including reduced interest rates and increasing capital investments. PE firms are increasingly targeting insurance companies. Most insurance products, such as life insurance and long-term care, represent stable liabilities, necessitating backing by durable assets.
Gary McGaghey is among the successful PE managers. Gary is an experienced CFO with vast experience in delivering increased shareholder value. His ability to deliver hails from strong leadership competencies, business expertise, and financial exposure across various markets globally. Gary McGaghey has owned several PE firms, including being a CFO at Nelson & Co Ltd, global alternative medicine business, and Robertson’s Foods Ltd, a leading FMCG business owned by private equity shareholders. He has also served as the interim CEO in Unilever, based in London and Geneva before exiting to be a permanent CFO in South Africa.
Gary McGaghey and other PE managers contribute to higher returns on assets for insurance companies, helping them generate a return on equity. They also increase value for assets under their management, generating additional fee income and providing a source for permanent capital through access to the insurance company’s balance sheet. Recently, special purpose acquisition companies have been challenging PE firms by creating more opportunities for PE as a channel for capital and low-interest rates to spur activity. This challenge is beneficial for any involved businesses, enabling them to remain compliant over tax obligations and avoid tax issues in the future.