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Behind Private Equity's Curtain

TedTed
edited October 2014 in Fund Discussions
FYI: From New York to California, Wisconsin to Texas, hundreds of thousands of teachers, firefighters, police officers and other public employees are relying on their pensions for financial security.
Private equity firms are relying on their pensions, too. Over the last 10 years, pension funds have piled into private equity buyout funds. But in exchange for what they hope will be hefty returns, many pension funds have signed onto a kind of omerta, or code of silence, about the terms of the funds’ investments.
Regards,
Ted
http://www.nytimes.com/2014/10/19/business/retirement/behind-private-equitys-curtain.html?ref=business

I hold a position in KKR: M* Snapshot Of KKR:http://quotes.morningstar.com/stock/kkr/s?t=kkr

Comments

  • heezsafe
    @Ted
    What, only one position?
    I think you need a diversifier. Something more primal, red in tooth and claw, slathered in hot sauce (like Famous Dave's Devil's Spit). How about something like.....ummmmm........ Bain Capital!:)
  • scott
    Long oak and bx although KKR is a fine choice as well. BX is spinning off its advisory services as a new company next year. A while ago BX spun off Blackrock.
  • heezsafe
    @scott
    re. OAK. It's current price is o.k. but I'm thinking, sometime in the next 6 months, it's gonna be better, maybe at IPO price or even below. Nonetheless, many of their master funds are maturing and undergoing liquidation, contributing to currently elevated qtrly distributions; as you've noted to others, future distributions may be uneven and probably lower, as OAK just gathers new pots of cash and waits for the next round of distressed opportunities. In that regard, as a guesstimate for expected yield in the near-term, from continuing operations, I'm using circa 0.55-60 for the qtrly, Do you think that's about right, or too optimistic?
  • TedTed
    @heezsafe: Sounds good, but I don't believe Bain Capital is not a public traded company. As to Dave's Insanity Hot Sause, I drink a bottle or two every night.
    Regards,
    Ted

    Dave's Insanity Hot Sause:
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