, 7 tweets, 3 min read Read on Twitter
Private report on the state of PE and history of the industry.

Summary: Multiples are high, but might be the “new normal” amid industry maturation. Pessimism about the credit markets is counterintuitively accelerating deals. PE "data science" is aimed at paying more.
OPM + abundant non-recourse debt allows for increased risk-taking reflected in higher multiples. With all the new money entering the system, even with credit tightening, it's not likely to reverse course anytime soon.
Historical PE narrative:

Financial Engineering —> Breakup Value —> Value-Add —> Specialization
Strip it all away and price matters, a lot.
Alternative used to be public market liquidity. Now, it’s unnecessary, riskier, and more costly until much later-stage.
1) A multiple of what? 2) What do you have to believe for this to work out?
Current state of PE data science is justifying higher prices through increasing conviction.

Problems of selection bias, standardization, and discoverability reign. Will likely take a mass adopted software to fix.

My take on @ryan_caldbeck's take:
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