Friday, March 6, 2015

PEUs Feel Surge in Asset Prices: Time to Cheat?

The Sydney Morning Herald reported:

Private equity executives have identified surging asset prices as one of the biggest challenges confronting the industry in 2015, particularly as competition for assets remains fierce and globally firms have $US1.2 trillion ($1.5 trillion) in funds to deploy. 
This harkens back to the frothy days before the 2008 crash when private equity underwriters (PEU) colluded to reign in the very same surging asset prices.  

6-12-14:   Goldman, Bain Settle Private Equity Club Deal Lawsuit ($121 million combined) 7-11-14:   Silver Lake The Latest To Settle LBO Suit With $30M Deal ($29.5 million)

8-07-14:   K.K.R., Blackstone and TPG Private Equity Firms Agree to Settle Lawsuit on Collusion ($325 million)
9-08-14:   Carlyle Deal Concludes a Lawsuit Against Private Equity ($115 million)

The settlement totaled $590/5 million.  Carlyle passed the lawsuit costs onto investors, its limited partners.  PEU founders cheated and passed the costs onto customers.

Rest assured any future collaboration will take place under the protection of Chatham House rules, whether it be in Davos, at Bilderberg or any SuperReturn conferences.  E-mail will not be used. 

Despite earlier predictions surveillance will not be employed on the ruling class. Technology will provide protection for the collusion class.  The reason:  PEU political sponsors need funding and post public service employment