Abnormal Returns (yummy) delivers a private equity link blitz followed by another one which, among other notables, cites Going Private. Hard to dislike a blog like this. Not to mention that their new header is quite pretty. (I still miss the old New York skyline one though). I would also be remiss if I did not call the particular attentions of Going Private readers to the excellent look into hedge fund-private equity convergence set gingerly against the backdrop of Carlyle's hedge fund re-entry and penned by "Information Arbitrage," in turn revealed to us via link by the always discerning eye of Abnormal Returns.
Information Arbitrage hits it on the head here, in my view, by identifying one of the key issues as a cultural one.
The first issue comes down to a melding of cultures which are very, very different. Private equity guys are deal guys. They tend to be pretty good communicators. The have a modicum of patience. They understand the concept of delayed gratification, i.e., waiting for the big payout when the investment is liquidiated or a large dividend is scooped out of the portfolio company. Hedge fund managers, conversely, are often lousy communicators, highly impatient, and want to be paid yesterday. OK, so maybe the private equity guys and hedge fund guys won't go bowling together on Wednesday nights.
Good guess.
I expect Going Private readers will find the remaining details captivating and find the predictions, if my prediction on them comes to pass, quite predictive.
