Any tips for the 30 min PE case studies? I’ve had trouble finding the balance between asking more qualitatively about the company so as to understand its competitive landscape etc to inform assumptions and just straight up asking for numbers. I guess if the goal is to build a LBO, what are okay questions to ask without just appearing straight up asking as if you aren’t thinking about it? E.g. is this company capital intensive? Vs. historically, what % of sales is spent on capex?
The growth is a fad - great product for the right situation and no question it’s become a money grab in the dislocation, but the concept of replacement? I don’t buy it - it’ll always be a market segment, and probably bigger share than it was in 2018, but if you ask me it’s just an innovative, high fee product pushed by the banks. The fad will die. Coming from a 2x SPAC sponsor
Is there a certain minimum threshold of managed capital where below it doesn’t make sense to use a SPAC given the administrative burden / overhead?
SPACs take advantage of already existing infrastructure. Fast and easy for smaller offices to have a big impact.
Definitely more accessible to the public -> more capital
Funds and SPACs have $ targets when they raise. Allocating capital isn’t easy and then there are the portfolio management constraints
Definitely will never replace PE. Not really comparable. And who wants public co governance requirements?
PE is really to get away from the markets and not post quarterly results. I’m not privy enough to how people evaluate SPACs, but I’d imagine that’s a major differentiator that can’t be overcome
What are notable SPACs? Trying to do some research on some to understand their history / performance
$THCB
It would be Interesting to see platforms like Cadre, which are already accessible to the public, expand into corporate private equity from REPE. I can see how they could offer deal-by-deal investing
You can't say never, because SPACs might evolve in ways you can't predict. Sure it's always possible, but to understand you'd have to ask the question "what are the pros and cons to both" and then follow that up with "how might SPACs evolve to maximize the pros and minimize the cons?"
Probably like the known constraints of fixed income investing in the late 1970's right...
Yea if you don’t mind taking on some risk exposure to bad actors