How is this not a conflict of interest? Wasn’t the idea behind these independent banks to get rid of the problems plaguing large institutions who were on all sides of deal? Maybe I am missing something here but I would appreciate hearing the rationale for why it’s not a problem. 

 

Pretty sure the big banks stopped doing it bc they often ended up competing with their PE clients on deals (which obviously pissed off a lot of PE shops)

A lot of the smaller shops today (outside of the MM) service large corporate clients more so than PE funds so they don’t really have the same conflicts as the BBs

I know Liontree, Raine and BDT all have their own principal investing arms so I wouldn’t be surprised to see other EBs getting involved in the investing space

 

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