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