Thursday, March 22, 2007

Carlos Slim Helus view point of Philantropy

Philanthropy new view point

“Third-richest man say he won’t act like Santa Claus”

Gift Wrapping

Last week there was an interesting article in Philantrophy News Digest about the third-richest man; Carlos Slim HelĂș, who believes that “businessmen can do more good by building solid companies than by acting philanthropically”.

Regarding the way Gates and Buffett act in this field he argues: “Our concept is more to accomplish and solve things, rather than giving — that is, not going around like Santa Claus”…

Private Equity and more

Conway warned that the cheap debt private equity firms have been thriving on is likely to be history in the not-too-distant future, saying, "The longer it lasts, the worse it will be when it ends." Conway, directing his memo to his p.e. peers at Carlyle, stated, "Frankly, there is so much liquidity in the world financial system, that lenders are making very risky credit decisions.

This debt has enabled us to do transactions that were previously unimaginable, and has resulted in generally higher exist multiples than entry multiples." When Conway says "us," he literally means deals involving his own firm, including the $15 billion buyout of Hertz and the $18 billion Freescale deal. In preparation for the eventual fall, Conway offered three recommendations:

--"If the excess liquidity ended tomorrow,

I would want as much flexibility as possible - are our covenants loose enough? Have we hedged against a share upward move in rates? Can we draw down on our revolving credit loan facilities?" he asked. SEE LEON BLACK, APOLLO

--"Second, liquidity has led to a significant reduction in risk premiums - most investors in most asset classes are not being paid for the risk being taken. Our strategy should evolve to take lower risk deals and earn lower returns." SEE HENRY KRAVIS, KKR


we should redouble our focus on deals with downside protection - asset coverage, multiple and early exit paths, strategic partners, government protection, consumer needs, controllable capital expenditures and defensible market positions," he said. SEE PRIVATE EQUITY, ORIGINAL BUSINESS MODEL

Monday, March 19, 2007

Who will take Blackstone Private

Can any one answer me this billion dollar question.

IPO for Private Equity Conglomorate, Yes I am talking reality here

Blackstone Plan Could Reshape Private Equity -

Blackstone Plan
Could Reshape
Private Equity
Listing Would Require
Public Disclosures Likely
To Intensify Scrutiny
March 19, 2007; Page A1

Blackstone Group's expected decision to seek money from public shareholders will place under scrutiny -- and possibly lead to changes in -- the highly lucrative private-equity business model that has transformed Wall Street in recent years.

Blackstone, which has grown rich taking public companies private, is in the advanced stages of planning an initial public offering of roughly 10% of the firm's core partnership, according to people familiar with the matter.

That prospect worries other private-equity firms. The hefty fees the partnership charges the big investors who supply its buyout funds make it potentially attractive to public shareholders. Taking the partnership at its heart public might oblige Blackstone to disclose how much of those fees it keeps for itself, and other private-equity firms aren't eager for that to happen. Any such disclosures, while they could be good for investors, might expose Blackstone and its rivals to criticism from their investors -- and from lawmakers.

Tuesday, March 13, 2007

Trump and interesting facts

Gnorb.NET » Blog Archive » Notes From Donald Trump’s “How to Get Rich”

Be a General

* If you are careful when finding employees, management becomes a lot easier.

* Keep the big picture [your ultimate goal] in mind while attending to the daily details. This can seem like a balancing act, but it is absolutely necessary for success in running a company.

Private Equity's New Entrepreneurs

Private Equity's New Entrepreneurs
They run their own firms, seek out smaller deals that don't generate headlines—and make returns that are on par with the big boys

Friday, March 09, 2007

Trump and the ideology

The book is interesting not all but surely the summary. Many of these you might have heard else where. But worth a read once more.

Trump and the new book