They will be turned into capital — equity that can be leveraged.
CKx, owned by the capital equity firm Apollo Global Management, will be rechristened Thursday as Core Media Group.
These investments, primarily those of high net worth clients, include venture capital, equity hedge funds and fixed-income hedge funds.
According to this standard, banks had to retain "tier-1 capital" (equity, mostly) equivalent to 4% of their risk-weighted assets.
Let's assume, for the simplicity of math, that pre-crisis, Citibank had $100 billion in private capital (equity), $900 billion in FDIC insured deposits and $1trillion in loans (assets).
But they all had one main challenge: Lack of access to money in one form or another (debt capital, equity investment, smart money, or institutional investors) when they were starting out.
You will often see shareholders' equity referred to as owners' equity, ownership equity, share capital, stockholders' equity, or net worth.
Often this means reducing a firm's equity capital, because equity is often more expensive than debt.
The company now has $110 billion in assets under management, having bought assets and controlling interests in businesses with a combination of equity capital, private equity funds and debt.
Banks ran balance-sheets with ever lower levels of equity capital; private equity and hedge funds, which use debt aggressively, churned out billionaires.
