Hedge fund managers: Are you full of great, bold, interesting trade ideas? Haven’t gotten enough money from Blackstone (or anyone else) and/or have an annoyingly restrictive prospectus that won’t allow you to let it all ride on one of them? Need a little extra scratch?
Private Equity Funds Will Start Earning 30% IRRs For Teachers’ Pensions Again Just As Soon As You All Elect Mitt RomneyBy Matt Levine
If you work in private equity the last few months have not been kind to you. Man, dog, and Newt have all been ganging up on the industry, and it has not been helped by faux pas from its most famous alumnus, publicity around job losses and dividend-recaps-into-bankruptcy, or a renewed carried-interest debate.
Not to fear, though: coming to the rescue today are a rag-tag bunch of saviors including a cheesy website, a serial private equity CEO who’s pretty sure he was never instructed to torch the place for insurance money, aaaaaaand Blackstone’s Tony James: Read more »
He gets it: no more comparing Obama to Hitler. The new plan is subtlety, which is why the Blackstone boss took to the FT today to show the President an olive branch. Then he whacked Obama with it repeatedly.
His best piece of advice? If you really want to fix what ails America, maybe you should get a private equity executive to turn things around. Just saying.
The US economy resembles a business badly needing turnround. Its growth is anaemic. Like many a faltering business, it has too much debt. No one, least of all S&P, believes that the latest deficit reduction package will solve this. There is too little investment. Corporations and consumers are cautious about spending, while the recent sharp drop in equity prices shows that investors do not want to risk capital in the market.
My firm has invested in, and advised on, hundreds of businesses in the past 25 years and we’ve seen companies successfully overcome such challenges.
Leveraged buyout and venture capital firms are steaming over a new carve-out provision for family farms inserted at the last minute into the carried interest tax hike that passed the House at the end of last month.
The provision appears to exempt farmers who have organized their business as investment partnerships from paying ordinary income tax on the money they take from the partnership. The new bill, of course, will treat most carried interest as income for tax purposes instead of capital gains. Private equity and VC firms say the exemption is unfair and Congress is merely cherry picking certain industries to raise taxes on. Read more »