PE HUB Wire Highlights, 12.6.18


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

KKR leads Cross River’s $100 mln raise; ArcLight explores secondary process on older fund; PE HUB readers respond to #metoo backlash

Technical issues delayed this morning’s wire. We apologize.

We have a big fintech deal this Thursday morning. Cross River Bank, which provides banking services for financial technology companies, has raised $100 million. KKR is leading the round and is injecting three-quarters of the funding. Cross River raised $28 million in late 2016 from Battery Ventures,Andreessen Horowitz and Ribbit Capital, which also participated in the current round. Find out who else invested here.

Bubble fearsLeon Black, co-founder of Apollo Global Management, joined the choir of execs worried about the credit market. “The credit markets, unlike the equity markets, have gone to bubble status,” Black said at the Goldman Sachs Financial Services conference yesterday, Bloomberg said. “The amount of covenant-less debt is more than 2007. You have a thirst for yield that exists on a global basis. So there is true excess.”

Earlier this week, Bloomberg reported that the #metoo movement has prompted some Wall Street execs to freeze out women. Men are avoiding women “at all costs” and have adopted controversial strategies like not taking dinners with female colleagues, not sitting next to them on flights and avoiding one-on-one meetings to avoid allegations of sexual harassment, the story said.

We asked you, Hubsters, what you thought of this behavior and whether you are participating. A lot of men wrote in. Here’s some of the responses:

Chris says: “I’m not sure why it shocked me, but the story about people avoiding innocuous situations with female colleagues was a little shocking or frustrating or both. I’m male and probably fit the proverbial ‘Wall Street’ executive description (although I live and work well outside physical Wall Street)…The depth and breadth of sexual harassment in our industry runs deeper than I suspected. There is zero reason to reflexively believe that women will make unfounded harassment accusations. I have to believe that men who fear such accusations have reason to fear those accusations.”

Ralph says he’s avoided potentially risky behavior for years. This includes: no face to face meetings behind closed doors, no social time other than company sponsored events with multiple participants, no language that can in any way be misconstrued, even with male colleagues, and, in some cases, no elevator rides without company. “I’ve never had any problems but know people who have had them,” he said.

Jeff says: “The ones who are ‘avoiding women at all costs’ are hiding something.  They have more skeletons than they want to admit is my bet. Wimps.”

Doug says: “My buddies and I will NOT get on an elevator with a woman anymore if we are alone with her…we avoid any and all situations/language where anything may become a ‘he said, she said’ scene….it’s just not worth it in the long run….!!”

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