40 Comments
тна Return to thread

I would like to hear Godfrey weigh-in on a few claims from this episode. Doomberg asserted that PE would have input but not total say on hiring/firing decisions as a result of a 20% stake. That feels incorrect. We know that boosters with much smaller "stakes" pull the trigger on hires and fires, while the AD sits in the chair in the corner of the bedroom.

Expand full comment

I would raise one point about this. Have talked about it on the show before but the conversation moved away from it in this case: I think the cost of capital provides some leverage for a minority owner like a PE firm. E.g. if you disapprove of the management of the business and get out at a lower valuation, it becomes harder for the business to raise money moving forward. It's not ultimate leverage but it's something.

Expand full comment

And I think that Doomberg underrated the leverage that PE will have. And this is all incredibly bleak and bad.

Expand full comment

He ignores the diversity of existing alternative asset classes in favor of a narrative that helps bros like Drew Weatherford fleece limited partners on fees by calling it PE. He is longer on ideology/worldview than knowledge of how institutional capital flows from investors to business and back.

Expand full comment