#ponzischeme klaxon:
With the reduction in plausible (profitable) 'exit strategies' #privateequity has taken to selling assets from older funds (allowing #investors to cash out) to newer funds where investors are expecting pay out(s) less immediate;
its a sort of pass the parcel until some investors find the asset is not worth what their fund has paid for it...
The key problem is if a PE fund is selling to itself, there's unlikely to be an independent valuation.
There's a scandal coming!
Emeritus Prof Christopher May /
npub1hr…f2ktj
2023-10-10 05:41:33
Author Public Key
npub1hr0x0gm9ksmvuvqwkyzfjuczv9pln83axuftxfhnq2maday69ypqtf2ktjPublished at
2023-10-10 05:41:33Event JSON
{
"id": "6f37cb46f656398913545b3574ad32ca4a34961d35d9fe86c99f9fcb71a19d8d",
"pubkey": "b8de67a365b436ce300eb1049973026143f99e3d3712b326f302b7d6f49a2902",
"created_at": 1696916493,
"kind": 1,
"tags": [
[
"t",
"ponzischeme"
],
[
"t",
"privateequity"
],
[
"t",
"investors"
],
[
"proxy",
"https://zirk.us/users/ChrisMayLA6/statuses/111209119293942497",
"activitypub"
]
],
"content": "#ponzischeme klaxon: \n\nWith the reduction in plausible (profitable) 'exit strategies' #privateequity has taken to selling assets from older funds (allowing #investors to cash out) to newer funds where investors are expecting pay out(s) less immediate;\n\nits a sort of pass the parcel until some investors find the asset is not worth what their fund has paid for it...\n\nThe key problem is if a PE fund is selling to itself, there's unlikely to be an independent valuation.\n\nThere's a scandal coming!",
"sig": "537e611e4e370e7643090f693438fbc6469302b4d28997479af349ad417c9ae6fc1dd0e4a219b77bfb378264a55bebb287aa805251baa93f8bd2494a56ead0aa"
}