Davos Open Forum 2008 - Private Equity and Hedge Funds

3,490 views · Published 25 January 2008 · 1:35:04 · Indexed 27 September 2026

Channel: World Economic Forum · 2008 · News & Politics

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24.01.2008

Open Forum - Private Equity and Hedge Funds - Friend or Foe?

Private equity funds and hedge funds allow pension funds, foundations and wealthy individuals to invest in alternatives to shares and bonds. These investments are important for economic growth and have enabled the creation of many start-ups. Nonetheless, critics argue that private equity funds and hedge funds put short-term returns before the sustained development of companies. 

1) Which funds are buying major companies?
2) What does private equity achieve in a company -- strengthening and supporting long-term development or dismantling in view of quick profit?
3) Are regulations needed to protect the economy from the influence of private equity funds or hedge funds? Does their negative image make them more of a risk for our system?

Paul Fletcher, Senior Partner, Actis, United Kingdom
Christian Levrat, National Councillor of Switzerland
Hans Ruh, President, BlueValue, Switzerland
Philip Yea, Chief Executive, 3i Group, United Kingdom

Moderator
Dirk Schütz, Editor-in-Chief, Bilanz, Switzerland

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