Category: private equity
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Private Equity Domination
“How Private Equity Consumed America,” describes how private equity firms’ financial incentives, such as leveraged buyouts and performance fees, can lead to brutal business practices. The video uses Apollo Global’s acquisition of Yahoo as as an example and explains the ownership structure of J.W. Childs Associates.
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16B Dollar Bet
Michael Dell’s decision to take Dell private despite significant challenges is discussed. Facing a declining consumer PC business and a plummeting stock price, Dell shifted focus to software and services, investing $10 billion and growing it to $21 billion within five years. However, the market did not share the same optimism, leading to a guttered…
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We(Fail)
This video describes WeWork, an office space rental company masquerading as a tech company creating a “physical social network.” Despite raising $22 billion in venture capital, WeWork never turned a profit and is considered the worst venture capital deal in history. The video discusses the significant decline of WeWork’s stock since going public, as well…
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7 to 108 Billion
Howard Marks discusses the upcoming sea change in financial markets and the potential implications for investors. He highlights the shift from declining or ultra-low interest rates to a higher interest rate environment, stating that credit instruments may provide equity-like returns and become more attractive. Marks reflects on his career at Oaktree and the growth of…
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Oaktree’s new CEO
Armen Panossian (Co-CEO of 160B fund Oaktree Capital, now a subsidiary of Brookfield) discusses his new role, transaction volume, and partnerships in the private lending universe, particularly in real estate and corporate lending. He mentions liquidity in the market is significantly lower, with less trading volume and new issuance in high-yield bonds and senior loans.…
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Blackstone forecasts….
Blackstone CFO Michael Chae sees inflation trending down and economic resilience. However, he also highlights the challenges of the cost of capital and the availability of capital, which are affected by factors like short rates, quantitative tightening ($1T annually), and credit contraction. As a result, Blackstone expects the Fed to deliver a slowdown to the…