The Pepperdine Private Capital Markets Project at the Graziadio School of Business and Management released its first economic forecast in January. Led by John Paglia, senior researcher for the project and associate professor of finance, the project team asked 1,224 privately-held businesses, capital suppliers, intermediaries, and service providers to weigh-in on an economic forecast of the next 12 months.
The findings show that their perspective strongly contrasts with their public market counterparts on important growth measures. There remains cause for caution in 2011, but also opportunities that inspire optimism. Topics of exploration included: how businesses of varying sizes differ in their preference on dollar strength; how increasing the federal debt ceiling might impact the economy; predictions for GDP growth; distribution of the economic stimulus measures between publicly traded and privately-held companies; and which countries are viewed as improved locations for expansion or investment.
Paglia has been conducting ongoing research to dig deeper into how current economic issues are specifically affecting private companies. The Pepperdine Private Capital Markets Project is a critical step in this process. Through two survey cycles and published summary reports per year, it will help lenders, investors, and businesses make optimal investment and financing decisions, and better determine where the opportunities to create lasting economic value may be realized.