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Slice of MIT,
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Tito's News
Very entertaining and insightful presentation by Roger McNamee (technology private equity guru and rock musician, Silver Lake and Elevation Partners founder)
(Source: fora.tv)
Contrary to what I had expected, private equity mega deals are nearly “back to normal”, while small deals have been suffering the most (via Where did all the LBOs go? - The Term Sheet: Fortune’s deals blog)
GCP California Fund, raised in 2002-2003 and managed by Leonard Green & Partners, is by far the top-performing fund ever among CALPERS alternative investments, with an 8.5x return.
I think that CALPERS does not invest in Sequoia and KPCB, whose single investment in Google probably delivered approximately a 10x return on their whole funds raised in the late nineties.
Yesterday we announced a first closing of our second fund Sinergia II.
The “buyer beware” principle wins again, investment bank wins again: Jury Finds Citigroup Not Liable in Terra Firma Suit Over EMI - WSJ.com.
Secondary buy-outs are no good
If Alan Patricof (the “A” and “P” in APAX) has a hard time fund-raising, then good luck.
One of the main drivers of private equity deal making of large buy-out funds is the “expiration date” on massive amounts of committed but uninvested capital. There won’t be such an over-supply of money when the time for divestment will come in 4-5 years. It is a losing proposition for limited partners who are stuck with their commitments to invest and with misalignment of incentives with general partners.