peHub Second Opinion

***Mark Florian joined First Reserve from UBS. It seems like private equity has an endless supply of jobs for professionals who are disillusioned with or canned from Wall Street. Yes, PE seems like the logical next step for an experienced M&A banker, but there’s not much work to be done in private equity right now either. The grass is always greener, I suppose. At least First Reserve has been busy.

***Blogging about blogging about blogging. Read Infectious Greed’s take on the Craigslist hedge fund job ad.

***Ever heard of a “Reverse LBO”? That’s what sister publication Buyouts magazine called a PE-backed IPO back in the day, my esteemed colleague Jeremy Harrel pointed out. That’s what Josh Lerner still calls them. Did the name eventually change the same reason the term “leveraged buyout firm” is now “private equity firm”? That reason being to erase the stigma associated with RJR Nabisco and other negative, buyout-related connotations (you know, “quick flip,” “slash and burn,” “Barbarians at the Gate”). Interesting to note here that Buyouts is one of the few remaining industry publications that still reserves the word “private equity” for reference to both PE and VC.

***Add one more to the Chicago Cubs auction list.

***Speaking of that, the Josh Lerner study I linked to above is exactly what I was looking for a few weeks ago when I asked if anyone had ever studied the long-term performance of PE-backed IPOs, compared to public benchmarks. According to him, they have, unless you’re talking about a quick flip. He points to Hertz, Refco, and Warner Chillcott as examples. It’s a few years old, God knows there’s been examples a-plenty since.

***This is old news, but I have never seen it before and think its worth a revisit for the acquainted. Also, watching it without sound does not do this justice. Put your headphones on, and see Steve Ballmer start a presentation.