Monday, January 11, 2010

"Speculators" Stake Out Health Care Turf

Who knew health care reform would entice the very speculators President Obama derided nearly a year ago? The Chrysler cramdown was on and Perella Weinberg didn't like Uncle Sam's terms. President Obama called them:

"a small band of speculators.... I don’t stand with those who held out when everyone else is making sacrifices.”

Perella Weinberg read the health reform tea leaves, deciding there is money to be made. It purchased Tokum Capital, a $25 million fund specializing in health care. A Perella Weinberg representative said:

“Health care is viewed as a very important space, particularly given the degree of change occurring in the sector, and high-quality managers have an opportunity to generate alpha and distinguish themselves."

More directly, there's big money to be made. I smell a PEU, private equity underwriter.

Update 1-20-10 Perella Weinberg will invest $100 million in the transportation sector.