Sunday, February 19, 2012

Geldorf, Bono: PEU's to Rock Africa & Facebook

The Independent reported:

An Africa-focused private equity firm, fronted by former Boomtown Rats singer and Live Aid organiser Bob Geldof, has raised close to €160m from well-heeled investors keen to buy stakes in enterprises and companies across the continent.

Last week 8 Miles closed its first fund -- having raised €155m -- with pledges to invest from the World Bank, the African Development Bank, UK state overseas investment firm CDC Group, as well as institutional and private investors, including African buyout fund Vital Capital.
The World Bank has an established track record in global tampering, required to open markets for the West.  Note:  The first three investors are state funded organizations.

Africa has a long history of Western state-sponsored intervention, the most recent being the ouster of Libya's Muammar Gadhafi.  It seems Gadhafi used Libya's billions to advance the African continent.  Did he require 30% annual returns like The Carlyle Group, a major private equity underwriter (PEU)? What returns did Geldorf's 8 Miles promise investors?

Elevation Partners, with U2's Bono as managing director, will make over $1 billion in Facebook's IPO according to The Independent.

Bono is involved with private equity firm Elevation Partners, which invested $270m for a 1.5 per cent stake in Facebook -- the shares are worth up to $1.5bn (about €1.14bn)

Bono personally invested in Facebook, as well.  While Bono cashes in, Geldorf looks to bleed African firms, at least of management fees and a percent of profits.

In "Why the West Wants fhe Fall of Gadhafi", Jean-Paul Pougala wrote:

Africa's strength and real freedom will only come if it can take properly thought out actions and assume the consequences. Dignity and respect come with a price tag. Are we prepared to pay it? Otherwise, our place is in the kitchen and in the toilets in order to make others comfortable.
PEU's are all about finest places, the rarest historical documents.  They expect to be comfortable, very comfortable.  Unfortunately, it's Africa's turn to be bled by 21st Century Robber Barons.

Update 3-1-12:  Geldorf pushed 8 Miles at the Berlin SuperReturn conference. Geldorf is "promising investors an internal rate of return of over 25 percent."  He's got the PEU sales pitch down, including the puffery.