Discover and read the best of Twitter Threads about #privateequity

Most recents (6)

1/ I've been having a few conversations with people in #VC about the denominator problem and I wanted to share this bit of math to put things in perspective:
If you run a $1B endowment, you may have a 15% #PrivateEquity target . . .
2/ So that means you're looking to have $150M in NAV of private holdings . . . and on top of that, you've got undrawn commitments of another 50 cents to $1.50 for every dollar of NAV depending on your positioning ands assumptions
3/ An old rule of thumb says that you should have $1 of undrawn for every $1 of NAV, but Dean Takahashi and Seth Alexander wrote a great paper a while back that refined that thinking, although the rule of thumb still seems to work for most people
Read 10 tweets

1/ Venture capital is a very difficult strategy.

We are all mesmerized by those few who've achieved success in the area but deal outcomes usually look like this:

• 65% fail with a capital loss
• 25% barely any return
• 6% a good return
• 4% incredible return
2/ While 94% of all investments don't have any decent returns, striking a home run (4% of deals) could be extremely rewarding.

Keep in mind successful VC investors usually make their profits in one lump sum — sometimes waiting 5 to 10 years at the time without any cash flow.
3/ Additionally, remember that selling privately owned business in start-up stages is a daunting task.

Sure, in recent years VC trends have become very popular, but traditionally these strategies score very low liquidity ranking. It's not easy to exit.

Read 4 tweets
Tune in now to the @FSCDems' hearing, "America for Sale? An Examination of the Practices of Private Funds."


We'll be live-tweeting the hearing in the thread below 👇
@FSCDems @EileenAppelbaum of @ceprdc:

“Toys R Us failed, its stores were shuttered, and 33,000 workers lost their jobs. It is this reckless loading of debt that the #StopWallStLooting Act would end.”
@FSCDems @EileenAppelbaum @ceprdc Wayne Moore: “Public pension funds will pay up to $45 billion in fees and expenses to the industry this year, a massive transfer of wealth from workers to Wall Street”

"While just 10% of our portfolio, #PrivateEquity makes up half of our investment costs"
Read 18 tweets
#Predictions for the rest of 2019:
1. Trump’s #dementia worsens.
2. Try as he may, Bolton fails to start war with #Iran.
3. Democratic candidates pick up seats in #NJLeg #KYLeg #VALeg #MSLeg & #LALeg.
4. Bots from Iran/Syria/Russia will wreck havoc on the Internet one day by retweeting like a DOS attack.
5. #Brexit will be extended yet again until 2020.
6. Interest rates will spike, but corporate stock buybacks will continue to prop up the stock market until late in the year.
6. Due to Trump’s tariffs on Chinese goods, other countries raise prices opportunistically. #Inflation heats up on durable goods and many other products. (H/t to Art Leonard)
7. School shootings return as usual.
8. No #InfrastructureWeek happens.
Read 18 tweets
"The Homestead "temporary influx facility" is the largest shelter for migrant children in the country. Homestead is the only such facility run by a for-profit corporation. It is also the only one that receives no oversight from state regulators."
"The operator is Comprehensive Health Services. The FL-based company dispatched medical teams to the Gulf Coast after Hurricane Katrina, to Haiti after the earthquake, & to Balad Air Base in Iraq. And in 2016, it entered the migrant shelter business."
"The current Homestead contract with the Department of Health and Human Services is worth up to $220 million."
Read 103 tweets
💪A thread on amazing Twitter threads 😍👇
In the process of revamping my #Twitter profile (dormant earlier), I have come to appreciate the wonderful underutilized platform it is!
Some threads contain crisp knowledge capsules that can help many. Starting 1 on such curated content
1. I largely rely on this: to find content
2. What I wish to share is what coincides largely with my interests- #Learning, #Investing, #Behavioralpsychology (#mentalmodels, #bias, etc), #Businessbooks, Industry insights/case studies, Life experiences, etc
While it will be difficult to structure the order of content here, I will try to block threads by category (as noted above & more). Feel free to comment with any good thread that you would have come across. Cumulative learning always helps.
Read 37 tweets

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