peHUB Second Opinion 11.7.08

A Tip: From Solomon Owayda of PE firm SVG Advisors. PE firms, its time to lower your fees, if you want cash-strapped LPs to continue to invest.

Mr Owayda said the “2 and 20” model, whereby private equity groups charge an annual fee of 2 per cent of funds raised and take 20 per cent of any profits – was a relic from a time when most buy-out funds were much smaller.

France Has A SWF: And it’s done its first deal, thanks to Sarkozy’s plans for “reigniting the country’s economy.”

Did You Know: Probably, but I didn’t. Rahm Emanuel, the White House Chief of Staff-Elect, was once a Wasserstein Perella banker. Also, the character Ari Gold, a high strung, macho Hollywood agent on Entourage, is supposedly based on his brother, Ari Emanuel.

Wildly Wildly Unbased Rumour: From a commenter, on a tabloid Web site, saying Goldman Sachs could go private.

Now I Get It: The Big Money gives us a better understanding of the Whole Foods situation, and Leonard Green Partners’ recent investment in the not-very-recession-proof company.

“Initially, investors greeted that news with a rally. Then it sank in that the preferred stock Leonard Green bought is convertible into common shares that would give it a 17 percent stake, diluting the stakes held by existing stockholders.”

Not Pretty: Huntsman battle rages on.

The Ugliest Industry In The US: It’s got a pretty beat-up PE bet behind it, and now Chrysler may need to defer to Backup Plan T (we’re almost out of letters, since Chrysler selling to Cerberus must’ve been at least Plan F)…

Viral Ridiculousness: Hey, it’s Friday. Have a laugh over one man’s attempt to pay a bill with a drawing of a spider.