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"Yet the biggest losers in all of this will be the private equity firms"
So it's not all bad news. Nice to see PE actually get caught in the middle of their usual "destroy a company's balance sheet" game.
Oh wow. For great justice remove every zig. Every one of those equity partners needs a beating.
This was actually what I was looking for, and I am glad that I finally came here! This for sharing and keep up the good work...
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It looks like even the Bond market is taking a beating these days.
Sorry, there was no way that I could walk away from that one.
You almost stole my thunder with that one. What I was going to say was, "even James Bond can't get them out of this one."
This is really a great stuff for sharing.keep it up .Thanks for sharing,
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nice job TD.
My only wish was, when i saw this article, that Hunter S. Thompson could have been more sane and not pull that trigger back in 05. Fun, it was just 2 yrs in front of him ... Goddammit
amen cb... imagine his writing about the fed? vampire squid? the list goes on....he probably would have even given up the wild turkey
CB: Never given up his Wild Turkey or the smokes..
cheeks me too.
i don't know what happened that night, i was lying on a surgical bed at AVH, when they brought him in a body bag. it was so screwed up that day. anita was working out at the aspen club. stars, moon everything was misaligned, cause i fucked my life up with gravity,
B I G T I M E.
he said he just had to much pain. wonder, really wonder what that state would be like.
he truly was the most hysterical person. he would attend the woody creek caucus meetings, his cause was for the little people and not to expand the airport so the big mother fucking gulfstreams couldn't land and own the place. truly battled a good battle. i would almost pee in my pants when he would speak at these caucus meeting. cause his delivery was just classic h u n t e r . plus my really good friend john oates, Hall and Oates, was a great support. they lived across from each other. don henley down river and jimmy, bipolar, ibbotson lived uphill. ed bradley lived on my road. when ken lay rented a house from a desperate bitch, next door to ed, i think everybody just had it. O V E R.
some people had conviction in america. they are dead cheeky.
February 20, 2005 President's day weekend in aspen, all the docs were busy with ski accidents. i got so screwed and got the back orthopedist.
ya know what i absolutely H A T E american holiday, especially 07/04.
Let's see here:
-Providence Equity Partners - $525 million_
"Education Management Corp is set to price its planned $380 million IPO in early October...
In June 2006, EDMC was bought by a group of private investors, Providence Equity Partners, Goldman Sachs Capital Partners (GS.N) and Leeds Equity Partners."
-Texas Pacific Group - $350 million-
"Myer, the large department store company that is partly controlled by the American private equity firm Texas Pacific Group, said on Friday that it planned to file for an initial public offering at the end of the month.
The offering, if successful, is expected to raise up to 2.5 billion Australian dollars, or $2.2 billion."
Need I continue?
Now that Mary has passed away, there's only Peter left to pay Paul.
Pretty boy Thane doesn't look much of the investment banker. Hopefully he has upgraded his staff from Jefferies - that restructuring team was a bunch of retards still confused by four-function math.
Knowing Wall Street - they will make moneny on the MGM deal somehow - because as well all know...
Dimons are forever.
There's no business like show business... This great global entertainment company is a turkey in the same fashion as the airline business. Liquidate it and put it out of its misery. It's "roarin" days are long past.
Wow. MGM. Kirk Kerkorian's "Rosebud".
Tyler, I think you're posting a bit too much. *Read* the articles you reference.
Tyler wrote, "The biggest equity checks were written by: ... Sony Corporation of America - $300 million, Comcast Corporation - $300 million."
Bloomberg story: "Sony Corp. and Comcast Corp. each owners of 20 percent, have written off their investments."
MGM stake is carried on SNE's and CMCSA's balance sheet at zero. How would they be "losers" on this news? Note that private equity was apparently not as prudent/honest about MGM's value as were SNE and CMCSA.
(I can't believe Tyler was able to resist mentioning that Goldman was an adviser to MGM on the go-private deal back in '04.)
How have they not be losers on their investments if they have written them down to zero (it doesnt matter if they wrote them down a minute ago or five years ago)?
His nickname at DLJ was DEANO..... how is that for background!
I'm starting to get tired of all the bullish news from zerohedge, Tyler, this kind of info is going to lose you readers...
It would be compelling to see how the PE firms shake out in a blown deal like this...ie did the partners/firm place their own capital at risk or just that of investors (endowments, pensions, wealthy families) into "XYZ capital XX**"
**disclaimer: heads we win (2 and 20), tails you're fudged as we still got 2
another bad call for TPG...that Wamu trade still gotta hurt
TPG god killed with Wamu and now this? I wish i got the priviledge of blowing billions gambling like those bozos!
I was going to mention that - they put in, what, $1.5B, in leading a $7B investment in WM, 6 months before it was taken down?
Numbers sounds good, certainly on the total. April - May 2008, i believe, when that was closed. In addition to WM, probably a few sovereign funds that got blitzed on buying finance preferreds (ones not named 'GS' anyway).
I'm not willing to opine on whether PE is good or bad but I will point out that in the average fund there are about twelve investments made:
1-2 of these will be complete losses
2-3 will be dogs that take a lot of work and you hopefully get your bait back
4-6 will get you 1.5-2x your money back in five years
2-3 will get you 2-4x your money
1-2 will be home runs, returning 4x+
PE has outperformed the stock market for the last thirty years. The model -- putting intelligent people in control of multiple portfolio companies to leverage the G&A and remove the nepotism, cronyism, sloth, and waste typically found in both public and family-owned companies -- works.
The alpha is disappearing slowly but the right firms still generate more of it than almost anywhere else on the street. It is an investment class that is all about the people.
The whole reason Private Equity is private is
because they are more guilty of these abuses
(I'll give you sloth because the profit motive in PE is greater), not less!
It's different this time.
Eh. A very good friend of mine used to be Chief Engineer at MGM. They've always been a turkey. Corporate incompetence was par for the course there.
I am Chumbawamba.
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