Texas Private Equity Conference
| Autor: | Jay C. Hartzell, James Nolen, Kenneth W. Wiles, Brian Hegi, Drew Sweeney, Farah Khan, Bill Gurley, BJ Loessberg, Rich Hall |
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| Rok vydání: | 2021 |
| Předmět: | |
| Zdroj: | Journal of Applied Corporate Finance. 33:95-113 |
| ISSN: | 1745-6622 1078-1196 |
| DOI: | 10.1111/jacf.12467 |
| Popis: | The President of The University of Texas at Austin discusses UTIMCO's investment strategy with its Chief Investment Officer.As the administrator of a perpetual endowment for the University of Texas and Texas AM(2) the health of the leveraged loan market;and (3) the search for new and better exit opportunities. All agreed that deal pricing was a perennial challenge, and that PE firms must work to develop a special “edge” in an intensely competitive market, where some firms consider a thousand deals a year to close on just two or three.The founder of Benchmark Capital begins by mentioning his firm's almost exclusive focus on early‐stage ventures and preference for being “the first money in.” He also notes Benchmark's different ownership structure;perhaps unique among venture firms, it is an equal partnership in which all partners have “the same economics,” the new as well as the oldest.The main investment advice offered is that, with interest rates so low, and some public company stocks trading at 30 to 50 times revenue, investors should remain as liquid as possibleThe recent popularity of SPACs is viewed as a response by issuers to “a broken IPO system” whose main symptom is runaway IPO underpricing and wealthy bankers. Noting that the amount of first‐day underpricing of IPOs has risen from $2 billion in 2016 to $30 billion in 2020, Gurley predicts that direct IPO listings, or DLs, will become much more common in the future.As for the recent frenzy of retail trading and the rise of Robinhood, Gurley says of the new trading firm's CEO,He tells the world that he's democratizing investing, but I don't think this is about investing at all. I think he's gamifying speculation… and I strongly suspect that the success rate of retail investors in options is really crappy. It should also scare the Biden administration that a lot of the money in Robinhood accounts came from stimulus checks this summer. |
| Databáze: | OpenAIRE |
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