Over the last fifteen years, zero interest rate policy (ZIRP) altered capital markets by impacting discount rates, which created a competitive advantage for private equity firms relative to other buyers of assets. This competitive advantage derived from the fundamentals of asset pricing — discounted cash flows (DCF) — which discounts free cash flows by a weighted average cost of capital (discount rate).

In 2022, Edward Chancellor published a book called The Price of Time, which chronicles the historical relationship of economic activity with interest rates. The conclusion of the book is that low interest rates reduce labor and capital productivity by reducing the threshold for efficiency in the deployment of capital. Chancellor observes that long periods of economic malaise tend to follow periods of capital excess.

Hudson Hill Capital, a private investment firm founded by Eric Rosen, today announced a significant majority investment in MarketTime, a SaaS platform that offers a comprehensive set of features to facilitate wholesale retail commerce between brands, manufacturer representatives, agents and retailers.

Over the past fifteen years, the private equity industry relied on M&A as a key pillar in value creation, thereby increasing its reliance on capital markets to finance returns. Over the next decade, higher interest rates will constrain access to capital for private equity owned businesses, lowering the attractiveness of debt funded M&A to generate equity returns.

Much has been made over the past 15 months about the impact of rising rates. Rising interest rates portend an ominous environment for the holders of existing assets, particularly those asset holders that acquired (and therefore priced) investments during a period when interest rates were very low.

In this article we’ll explore the “Sticky Situation” we find ourselves in financially and economically. Decades of easy money met the COVID crisis, knocking the US and global economy off its goldilocks relationship with low interest rates, low inflation, and low growth.

Global cloud-only digital transformation company Blue.cloud, announced that it has received a majority equity investment at an enterprise value exceeding $100 million from Hudson Hill Capital.

I’m going to make a controversial statement — printing money doesn’t cause inflation — they gasp in horror! Though the books, economics classes, inflation theory, and even the Maestro’s autobiography say differently, I’m looking out at the world as a practitioner and seeing something different.

They say, “imitation is the sincerest form of flattery that mediocrity can pay to greatness”. Perhaps we can alter the phrase to say “[adaptation] is the sincerest form of flattery…” as I’d like to mold a well-known talk Charlie Munger gave on July 20, 1996.

VTrips, a Florida based technology-enabled vacation rental manager throughout North America, announced today that it received a significant minority equity investment from Hudson Hill Capital, with all capital being funded to the balance sheet.

At HHC, we believe that the likely return on invested capital for a business over the next 5–10 years should drive the type of transaction we engage in rather than arrive to the scene with a prescriptive approach.

InXpress Holdings Ltd., a software-enabled global franchisor of transportation and logistics services, today announced it named four senior executives to its Board of Directors.

If you asked a group of business school professors to define “risk”, they would dutifully reply, “beta”. Define “beta”, you may respond.

One can trace the roots of capitalism through family business. Since 718, the same family has operated the Hoshi Ryokan, a Japanese inn.

My goal in founding the firm is to create something new, differentiated, and informed by my 30+ year career in private equity.

Hudson Hill Capital announced today that it acquired a majority stake in InXpress Holdings Ltd, a software-enabled global franchisor of transportation and logistics services.

Hudson Hill Capital, a private investment firm founded by Eric Rosen, announced today that it has acquired majority stakes in Global Transport Logistics, Inc. and Am Trans Expedite, Inc. to form Fusion Transport, LLC, a newly established logistics holding company.

Over the last fifteen years, zero interest rate policy (ZIRP) altered capital markets by impacting discount rates, which created a competitive advantage for private equity firms relative to other buyers of assets. This competitive advantage derived from the fundamentals of asset pricing — discounted cash flows (DCF) — which discounts free cash flows by a weighted average cost of capital (discount rate).

In 2022, Edward Chancellor published a book called The Price of Time, which chronicles the historical relationship of economic activity with interest rates. The conclusion of the book is that low interest rates reduce labor and capital productivity by reducing the threshold for efficiency in the deployment of capital. Chancellor observes that long periods of economic malaise tend to follow periods of capital excess.

Over the past fifteen years, the private equity industry relied on M&A as a key pillar in value creation, thereby increasing its reliance on capital markets to finance returns. Over the next decade, higher interest rates will constrain access to capital for private equity owned businesses, lowering the attractiveness of debt funded M&A to generate equity returns.

Much has been made over the past 15 months about the impact of rising rates. Rising interest rates portend an ominous environment for the holders of existing assets, particularly those asset holders that acquired (and therefore priced) investments during a period when interest rates were very low.

In this article we’ll explore the “Sticky Situation” we find ourselves in financially and economically. Decades of easy money met the COVID crisis, knocking the US and global economy off its goldilocks relationship with low interest rates, low inflation, and low growth.

I’m going to make a controversial statement — printing money doesn’t cause inflation — they gasp in horror! Though the books, economics classes, inflation theory, and even the Maestro’s autobiography say differently, I’m looking out at the world as a practitioner and seeing something different.

They say, “imitation is the sincerest form of flattery that mediocrity can pay to greatness”. Perhaps we can alter the phrase to say “[adaptation] is the sincerest form of flattery…” as I’d like to mold a well-known talk Charlie Munger gave on July 20, 1996.

At HHC, we believe that the likely return on invested capital for a business over the next 5–10 years should drive the type of transaction we engage in rather than arrive to the scene with a prescriptive approach.

If you asked a group of business school professors to define “risk”, they would dutifully reply, “beta”. Define “beta”, you may respond.

One can trace the roots of capitalism through family business. Since 718, the same family has operated the Hoshi Ryokan, a Japanese inn.

Hudson Hill Capital, a private investment firm founded by Eric Rosen, today announced a significant majority investment in MarketTime, a SaaS platform that offers a comprehensive set of features to facilitate wholesale retail commerce between brands, manufacturer representatives, agents and retailers.

Global cloud-only digital transformation company Blue.cloud, announced that it has received a majority equity investment at an enterprise value exceeding $100 million from Hudson Hill Capital.

VTrips, a Florida based technology-enabled vacation rental manager throughout North America, announced today that it received a significant minority equity investment from Hudson Hill Capital, with all capital being funded to the balance sheet.

InXpress Holdings Ltd., a software-enabled global franchisor of transportation and logistics services, today announced it named four senior executives to its Board of Directors.

Hudson Hill Capital announced today that it acquired a majority stake in InXpress Holdings Ltd, a software-enabled global franchisor of transportation and logistics services.

Hudson Hill Capital, a private investment firm founded by Eric Rosen, announced today that it has acquired majority stakes in Global Transport Logistics, Inc. and Am Trans Expedite, Inc. to form Fusion Transport, LLC, a newly established logistics holding company.