Mr. Silton exhibited drawings from meetings when the financial crisis was weighing on his private-equity consulting client.
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She has never raised money from venture or private equity investors, rejecting a request in 2003 from her biggest client Kaiser Permanente to get a piece of equity when her company was much smaller.
Private equity fears a client exodus in reaction to the uncertainty over the firm's future.
That way, the client can effectively manage its equity spend during the heavy phases of growth and recruiting, and avoid the issues associated with ad-hoc decisions on compensation.
The goal is not to take on billions in debt but instead build through long term equity investments and early client revenue.
Over time, senior partners and colleagues can become a natural fit to take over the practice in a seamless way, lessening the risk of client attrition, which in turn benefits the equity value of a business.
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That would apply to owning hedge funds, owning private equity funds, and proprietary trading that is not for any client-related business.
Frederick, a respected industry veteran with more than 20 years of experience, writes monthly columns for Schwab's client newsletters and is the author of the book The Trader's Guide to Equity Spreads.
But Data Distilleries has one big advantage: a strategic alliance with Accenture (previously Andersen Consulting), a global consulting group that also owns an equity stake and is busily putting its new partner in touch with senior managers in client companies.
"You get a lower pretax margin, but you get as high, or probably over time, a higher return on equity because its less capital-intensive, " says Napoli, referring to the Private Client unit.
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