Case | HBS Case Collection | September 2011

AXA Private Equity: The Diana Investment

by Michael J. Roberts and William A. Sahlman

Abstract

The case focuses on an investment made by AXA Private Equity, a French manufacturer of food ingredients. The investment is made at the height of the financial markets, and financed with significant debt. Soon thereafter, the financial crisis impacted the company's financial performance, the valuation of all companies, and the balance sheet of banks. When the company breaches a covenant this set off a series of negotiations over the restructuring of the debt on the balance sheet. The case raises issues over the proper valuation and financing for a company, how capital markets can impact this, and the incentives and motivations of all the stakeholders.

Keywords: Private Equity; Ethics; Investment; Financial Crisis;

Language: English Format: Print 28 pages EducatorsPurchase

Citation:

Roberts, Michael J., and William A. Sahlman. "AXA Private Equity: The Diana Investment." Harvard Business School Case 812-042, September 2011.

About the Author

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William A. Sahlman
Baker Foundation Professor, Dimitri V. D'Arbeloff - MBA Class of 1955 Professor of Business Administration, Emeritus
Entrepreneurial Management

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