CVC Capital Partners PLC, or CVC one of the largest European and global private equity, real estate and private credit asset management firms can reach 144 billion USDs of market capitalization if artificial intelligence, AI lives up to the current forecasts of Wall Street research analysts, investors and Silicon Valley technologists and investors, according to Wolfteam Ltd.'s projections and estimates.
CVC, along with the other leading private equity companies Blackstone, KKR, Apollo, Carlyle, Ares, etc. invests a large part of its raised funds in artificial intelligence, AI related AI data centers and related AI technology companies.
In addition, CVC is very profitable, posting net profit margin of 30 % + in the last four reported quarters.
Private equity in its essence is a leveraged equity investment with borrowed debt. AI and technology is an operationally leveraged investment. All this makers for a magnified effect of profits if private equity investments turn out to be profitable. And profitability begets profitability.
So, in short if AI changes our world as profoundly as Wall Street research analysts, investors and Silicon Valley technologists and investors currently forecast, this would make up for very profitable business for CVC.
AI technology deals for CVC will increase in count, as in 2021 was evident in the last technology boom, AI deals will beget deals not only for CVC, but for Blackstone, KKR, Apollo, Carlyle, Ares, etc. And CVC's profitability will drive tens of billions of USD in market capitalization value for CVC, according to Wolfteam Ltd.'s projections and estimates.
However, if the current overly optimistic forecasts for AI don't turn out to be correct, US and global stock markets could fall more that 52 %, and CVC, being a leveraged investment in nature could fall even more.
No comments:
Post a Comment