Here’s a look at the past week’s scoops, opinions and analysis from the peHUB blogging team.
Housekeeping first: We launched the internship rodeo, so MBAs, check out this guide.
Dan started out the week by telling venture capital investors to pay attention to ten-year performance numbers. While at the NVCA conference, he contemplated a prescription to fix VC-backed IPOs. Larry provided a Ph.D. analysis of the same problem. Joanna Glasner examined it, too.
We reported Jay Koh is leaving R3 Capital Partners, among a number of staff changes at the firm. Connie wrote that one VC is feeling the effects of the real estate bubble. Also, Tac Anderson will leave Idaho. One more personnel change: Tom Crotty won’t be in Battery Ventures’ 10th fund.
In a scandal unrelated to the New York Pension kickback scandal, we reported on Wilson Sonsini’s conflict of interest case. But don’t worry, there was plenty of pay-for-play news last week. On Thursday, Aldus Equity and co-founder Saul Meyer were charged as actors in the scandal. Dan posted the SEC and New York complaints here. Aldus’ attorney spoke out, calling the charges “appalling and careless.” And after some digging, we learned that Meyer’s alma mater didn’t have a spotless record, either. Lastly, we unearthed a few unfortunate quotes from Meyer in past interviews.
On the lending side, Buyouts pointed out that leveraged lending in Q1 was so cold S&P couldn’t even analyze it. But that won’t stop one firm from trying to exit. We got wind that Arcapita is holding an auction for Church’s Chicken. Dan asked if Chrysler was the Worst private equity deal ever (hint: probably not).
We saw yet another LBO-backed bankruptcy and thought it looked familiar: Oh yes, it won a Buyouts Deal of the year award. Which prompted to me to examine other raspberry award winners and realize why we now focus awards on exits.
Fresh off a secondaries conference, I provided a handy list of the 25 or so secondary funds in the market today. Beyond that, I wrote there are four real estate secondary funds in the market. That’s as yet another buyout firm shelves its fundraising process, Bernard wrote. Meanwhile, TPG took home yet another top honor as the largest fee-paying private equity firm.
One final secondaries note: Talk of negative premiums has come to the fore.
Wilbur Ross declared his interest in toxic assets (not a secret, but the size of his interest was news). Speaking of distressed investing, Siguler Guff may begin distressed BRIC investing. Speaking of distress, psychologists to the rich have noticed some changes recently.
Connie pointed out the limitations of startups like ReputationDefender. Meanwhile, Workday has now raised more than $150 million. Associated Content raised $6 million. Yet another entrepreneur has started a venture fund: The University Funds. In other VC news, Brad Feld acted as a guest chef at a french fry joint for charity.
And of course, First Read and Second Opinion covered lots of ground, including the MBA support system, the return of Gordon Gekko, the VC math problem, shiny happy Dow predictors, confusion over whether a firm actually owns its own portfolio companies, bloggers uncovering ponzi schemes, and the end of dumb money.