Jon Stewart destroys PE

Stewart has done it again, and absolutely trashes private equity. It's actually pretty sad, there were good points to be made, but this academic hack fell right into the trap and then began sounding like a character you'd see on Cartoon Network.

http://www.thedailyshow.com/watch/tue-january-31-…

104 Comments
 

Come on, man, the academic hack is actually right...factually speaking. Somebody needs to pen a good moral defense of private equity. It could surely be done.

"When I was young I thought that money was the most important thing in life; now that I am old I know that it is." - Oscar Wilde "Seriously, psychology is for those with two x chromosomes." - RagnarDanneskjold
 

What the hell point is Jon Stewart trying to make? Is he mad that PE is allegedly bad or that poor people aren't able to participate in PE investments?

Regards

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
 

^ I think, the latter.

Which I guess he can be upset about because it's a sort of discrimination, but I still can't bring myself to agree with him.

I think Stewart is a brilliant guy, but I can never relate to what he's trying to say.

To me, it's not that he come off as naive, just really disappointed in how the system works. But I guess that in itself probably makes him naive.

 
febreeze^ I think, the latter.

Which I guess he can be upset about because it's a sort of discrimination, but I still can't bring myself to agree with him.

I think Stewart is a brilliant guy, but I can never relate to what he's trying to say.

To me, it's not that he come off as naive, just really disappointed in how the system works. But I guess that in itself probably makes him naive.

Stewart is brilliant and not naive whatsoever. He's a talk show host, not a political theorist. What's he supposed to do to get viewers? Talk about risk arbitrage opportunities in private equity?

Competition is a sin. -John D. Rockefeller
 
Hooked on LEAPS
febreeze^ I think, the latter.

Which I guess he can be upset about because it's a sort of discrimination, but I still can't bring myself to agree with him.

I think Stewart is a brilliant guy, but I can never relate to what he's trying to say.

To me, it's not that he come off as naive, just really disappointed in how the system works. But I guess that in itself probably makes him naive.

Stewart is brilliant and not naive whatsoever. He's a talk show host, not a political theorist. What's he supposed to do to get viewers? Talk about risk arbitrage opportunities in private equity?

not at all. What I'm saying is, I like the comedy - I don't like the propaganda.

I rather watch Colbert over Stewart any time for that exact reason. Obviously the guy's personal opinions are gonna permeate the show, but I rather it not be as blatant.

I think it's pretty obvious that he is doing more than performing jokes. I never said that was a problem.

I responded to the other post to explain what I thought Stewart's argument was. You're telling me that's how he's supposed to gain viewers, by taking a side?

Ok, I guess. I find it pretty entertaining and informative (obviously to an extent,) so I don't mind it too much. But I also only watch it when I'm channel surfing. I treat it the same as the talk-shows on Fox or MSNBC, because that's what it is. They're all certainly funny in their own ways...

 

God the segment before that was hilarious. He showed how Romney keeps touting his 25 year experience at Bain as giving him the experience necessary to be President, then it showed Romney blasting Obama for saddling this country with tons of debt that is never meant to be paid. Which is exactly what he did at Bain for 25 years...

I don't think Stewart was really attacking PE in general, just pointing out the theater of all this in relation to Mitt's Bain connection.

 
seedy underbellyJon Stewart IS a cartoon network figure. This is his show:

"So I have nothing funny to say, but here's a funny video followed by a dumb-looking face and dialogue from video repeated in a bad brooklyn accent."

glad someone stated this. Please try and understand that for 4 years the show that lead into the Daily Show was about puppets making prank phone calls. Piece it together people. He is a source of entertainment NOT news

Here's the thing. If you can't spot the sucker in the first half hour at the table, you are the sucker.
 
whatwhatwhat
HFFBALLfan123Poor people, if they have some type of pension, are usually somewhat exposed to the PE asset class.
This. Perfect example of people not bitching when times are good but full of complaints when shit goes bad.

It's the honest truth. Wish there was a way to distill that into a bumpersticker.

"When I was young I thought that money was the most important thing in life; now that I am old I know that it is." - Oscar Wilde "Seriously, psychology is for those with two x chromosomes." - RagnarDanneskjold
 

I'll never understand the allure of Jon Leibowitz. He has a team of writers to make him smart and he just takes the liberal, populace side of everything. PE has a place in life and making money is not a sin or something to be looked down on.

I suggest people stop watching a comedian for their news and try going to some reputable sources or doing the back story reading themselves.

 
ANTI'll never understand the allure of Jon Leibowitz. He has a team of writers to make him smart and he just takes the liberal, populace side of everything. PE has a place in life and making money is not a sin or something to be looked down on.

I suggest people stop watching a comedian for their news and try going to some reputable sources or doing the back story reading themselves.

All he's doing is pointing out the absurdity in the process, and him an Colbert do a masterful job at it. Just because he's not a neocon doesn't mean he can't be respected.

 
JeffSkilling
ANTI'll never understand the allure of Jon Leibowitz. He has a team of writers to make him smart and he just takes the liberal, populace side of everything. PE has a place in life and making money is not a sin or something to be looked down on.

I suggest people stop watching a comedian for their news and try going to some reputable sources or doing the back story reading themselves.

All he's doing is pointing out the absurdity in the process, and him an Colbert do a masterful job at it. Just because he's not a neocon doesn't mean he can't be respected.

Where did I say he is not respectable because he isn't a neocon? You can be impartial and report the news, can't you? He has an agenda and just makes funny jokes. The guy is a comedian.

Anyone who gets their news from a comedy central "broadcast" needs to seriously re-evaluate their news source.

What absurdity are you talking about? Get real.

 

Jon Leibowitz is blatantly liberal, shitty comic. The fact that he brain washes millions of youthful idiots with his theft mentality makes me sick.

If you want some real news to watch the BBC or read a white paper. If you want left wing drivel go watch that clown.

 

Colbert is less obvious about it.

Although that might actually be more effective than how Stewart approaches it.

Either way, who cares? If you wanted to laugh, there are other channels and shows to watch. You watch it exactly because of that bias.

Actually, that's not true. I like watching the interviews the most.

 

Pretty much covers the entire argument. I think you can smell the bullshit on both sides = they're both right to some extent...

 
ANTIf this were a conversation about Bod Dylan, yes, why not.

What are you trying to insinuate?

I think he is trying to insinuate that you're a little up your own ass.

I'm not sure if you realize this but getting people like you worked up is exactly what John Stewart aims to do.

 

People like me? I don't watch his shit and frankly think it is funny how anyone could watch it and then try and talk about an issue. The guy is a comedian on comedy central.

And I didn't realize correctly naming a person who changed only their last name for now valid reason makes me "up my own ass", whatever that might mean.

 
ANTPeople like me? I don't watch his shit and frankly think it is funny how anyone could watch it and then try and talk about an issue. The guy is a comedian on comedy central.

And I didn't realize correctly naming a person who changed only their last name for now valid reason makes me "up my own ass", whatever that might mean.

You seem to have a very strong opinion on him for someone who doesn't watch his shit. If you get this worked up over the internet I'd hate to meet you in real life.

And I think most people would agree with me that calling him by his original name makes you seem like a tool. Ask around, who knows maybe it's just me.

 
Faddy
ANTPeople like me? I don't watch his shit and frankly think it is funny how anyone could watch it and then try and talk about an issue. The guy is a comedian on comedy central.

And I didn't realize correctly naming a person who changed only their last name for now valid reason makes me "up my own ass", whatever that might mean.

You seem to have a very strong opinion on him for someone who doesn't watch his shit. If you get this worked up over the internet I'd hate to meet you in real life.

And I think most people would agree with me that calling him by his original name makes you seem like a tool. Ask around, who knows maybe it's just me.

go suck a faddy
 

Because I don't watch him regularly or recently that doesn't mean I haven't read about him or know about his modus operandi? Also, how am I worked up? I am simply stating that he is not only biased, but a comic and therefore not a reliable or intelligent source for the news.

And calling a person by their original name makes me seem like a tool? Ok, cool. I understand your point. Facts and truth upset you. Do me and all of us a favor and go back to watching The Daily Show or Scooby Doo for all of your news information.

 
ANTBecause I don't watch him regularly or recently that doesn't mean I haven't read about him or know about his modus operandi? Also, how am I worked up? I am simply stating that he is not only biased, but a comic and therefore not a reliable or intelligent source for the news.

And calling a person by their original name makes me seem like a tool? Ok, cool. I understand your point. Facts and truth upset you. Do me and all of us a favor and go back to watching The Daily Show or Scooby Doo for all of your news information.

holy shit man your douchiness levels are through the roof. "modus operandi" are you serious?

someone back me up, I can't be the only one who think this guy sounds like a complete tool

 

Do you not like Latin words? Oh, I apologize. You get your information from a comic on a comedic channel. I would have used "MO" to abbreviate the word, but MO is commonly used to reference middle office so I thought it would be more clear to simply spell out the word.

And if douchiness is maximized by using appropriate and commonly used words to describe a situation I will consider myself guilty as charged.

 
ANTDo you not like Latin words? Oh, I apologize. You get your information from a comic on a comedic channel. I would have used "MO" to abbreviate the word, but MO is commonly used to reference middle office so I thought it would be more clear to simply spell out the word.

And if douchiness is maximized by using appropriate and commonly used words to describe a situation I will consider myself guilty as charged.

Please stop, you're only digging your hole deeper and deeper.

ANTWhy do you need someone to validate your opinion. Have some confidence in your own assertions and just go with it. Do you see me crying out for others to approve of what I say?

you might just be the smuggest internet hero I've ever run across. I can see you right now sipping on some red wine reading a novel. People like you rank below hipsters

 

Why do you need someone to validate your opinion. Have some confidence in your own assertions and just go with it. Do you see me crying out for others to approve of what I say?

 

Wonderful come back. So this is what it is like to exchange opinions with a Leibowitz viewer. Wow, the joys and in depth enlightenment that I have been missing.

 
ANTWonderful come back. So this is what it is like to exchange opinions with a Leibowitz viewer. Wow, the joys and in depth enlightenment that I have been missing.

not trying to "exchange opinions with you" I'm just telling you what you've probably been told multiple times throughout your life. You're a big douche. I can picture your facebook now.

 

I was drinking Pinot last night, no vino for me tonight. And you are against wine and reading? Man oh man, Comedy Central is ruining this country.

Maybe if you picked up a book now and then Leibowitz wouldn't be able to influence you as easily. Tsk Tsk.

 
ANTI was drinking Pinot last night, no vino for me tonight. And you are against wine and reading? Man oh man, Comedy Central is ruining this country.

Maybe if you picked up a book now and then Leibowitz wouldn't be able to influence you as easily. Tsk Tsk.

holy shit you're worse then I thought.

I must be getting trolled right now. This guy can't be real.

In case you are forreal, let me take a shot at it.

  1. You spend a majority (looking at your post representation) of your time on an internet forum aimed at college/post college students trying to break in to the finance industry. Now I'm not entirely sure but I'm assuming that you are well into your 20's and possibly even 30's, and that you already have a job. This could only mean you come on this forum to get some much needed attention that you cant seem to find anywhere else.

  2. I've seen you state your opinion very aggressively. You have a strong stance on opinions, as do most people, but most people decide to, oh I don't know, talk about them with real people. Let's assume most of your acquaintances got tired of you a long time ago which forced you onto the interwebs to spit your oh so worthy opinions. I think it's safe to say you don't have many friends, yet somehow you've convinced yourself that you do. Or even worse, you're few friends are EXACTLY like you.

  3. You use words like vino instead of wine and talk about yourself as if you are much better then others.... on an internet forum.

Stop looking for the attention you lack via human interaction online. It only makes you a much more suckier person then you already are. Take a look in the mirror dude. You probably have some cum in your hair.

 
Faddy
ANTI was drinking Pinot last night, no vino for me tonight. And you are against wine and reading? Man oh man, Comedy Central is ruining this country.

Maybe if you picked up a book now and then Leibowitz wouldn't be able to influence you as easily. Tsk Tsk.

holy shit you're worse then I thought.

I must be getting trolled right now. This guy can't be real.

In case you are forreal, let me take a shot at it.

  1. You spend a majority (looking at your post representation) of your time on an internet forum aimed at college/post college students trying to break in to the finance industry. Now I'm not entirely sure but I'm assuming that you are well into your 20's and possibly even 30's, and that you already have a job. This could only mean you come on this forum to get some much needed attention that you cant seem to find anywhere else.

  2. I've seen you state your opinion very aggressively. You have a strong stance on opinions, as do most people, but most people decide to, oh I don't know, talk about them with real people. Let's assume most of your acquaintances got tired of you a long time ago which forced you onto the interwebs to spit your oh so worthy opinions.

  3. You use words like vino instead of wine and talk about yourself as if you are much better then others.

Stop looking for the attention you lack via human interaction online. It only makes you a much more suckier person then you already are. Take a look in the mirror dude. You probably have some cum in your hair.

Did baby get upset? lol. And what is wrong with using vino? Do you not like a vocabulary? Hahahaha.

And what is with all the gay references? Talking about cum, me being up my ass, etc. Someone has some latent tendencies me thinks.

Go see a therapist or a glory hole kid. lol

 

Oh baby, the discourse is getting heated tonight. You provide some entertaining banter I must admit. You are most certainly correct though, no opinions are being exchanged from your side. That would require independent thought and thinking.

Weak come backs and weak insults. Isn't Family Guy on or something intellectually stimulating for you on TV?

 
ANTOh baby, the discourse is getting heated tonight. You provide some entertaining banter I must admit. You are most certainly correct though, no opinions are being exchanged from your side. That would require independent thought and thinking.

Weak come backs and weak insults. Isn't Family Guy on or something intellectually stimulating for you on TV?

bottom line is your a 30 year old with the most posts on an internet forum. All that needs to be said.

 
Faddy
ANTOh baby, the discourse is getting heated tonight. You provide some entertaining banter I must admit. You are most certainly correct though, no opinions are being exchanged from your side. That would require independent thought and thinking.

Weak come backs and weak insults. Isn't Family Guy on or something intellectually stimulating for you on TV?

bottom line is your a 30 year old with the most posts on an internet forum. All that needs to be said.

To be fair a) ~55% of those posts are to answer questions about MSF and MAcc programs for which he runs a pretty profitable site and b) he might be 30 but he has a legit job and uses this, like a lot of us, to fill time when he's not working but stuck at the office
If I had asked people what they wanted, they would have said faster horses - Henry Ford
 

You are actually incorrect. The most posts go to Eddie, who is 40. I just have a lot of silver banana's which increase my score.

Proper due diligence friend. Learn it and love it.

 
ANTWhy would I refute anything you said? And you are the one with the gay innuendo's the entire time.

nice one.

I think I've been a little mean. I kinda feel bad, I'll lay off. But seriously stop using vino instead of wine. Unless you're in italy then 10/10 it just makes you look like an asshole.

Night ant

 
ANT29 HPM, 29. haha. Don't rush things my friend.
Rounding up, like I do with my GPA on the rezzy
If I had asked people what they wanted, they would have said faster horses - Henry Ford
 
happypantsmcgee
ANT29 HPM, 29. haha. Don't rush things my friend.
Rounding up, like I do with my GPA on the rezzy

ANT, be lucky it's happy rounding up and not me...otherwise you would be 35! #unknownprivateschool

Regards

"The trouble with our liberal friends is not that they're ignorant, it's just that they know so much that isn't so." - Ronald Reagan
 

I swear Faddy /= duffmt6.

I like him though.

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 

jesus christ i just read this whole thing and I want to shoot someone. Makes me realize how lame forums can get. Yes, the whole "Jon Leibowitz" thing was retarded. If you don't watch the show and don't care about him, then why do you know his "real" name and find it necessary to refer to him as that? What are you trying to insinuate?

But, besides that, ANT has some good points. Stewart is a comedian and shouldnt be taken seriously. If comedy central is where you get the majority of your news from then you are a moron.

"Life all comes down to a few moments. This is one of them." - Bud Fox
 
noke2012 Stewart is a comedian and shouldnt be taken seriously. If comedy central is where you get the majority of your news from then you are a moron.

Where did anyone say they get their news from him? Also, when did he ever claim to be a news outlet (he has done the exact opposite)?

He is a comedian who happens to make social commentary. He leans left (pretty far left) but he by no means holds his punches when it comes to liberals looking like idiots. If you don't find him funny then that's fine. I don't find Dane Cook funny. If you think he somehow is manipulating people by pointing out the absurdity that exists in American media and politics come from an openly liberal viewpoint, then you need to take off the tin foil hat (ANT). Comedy is simply one of the most creative and effective ways of commenting on society, and Stewart is pretty good at it, whether you agree with his points or not.

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 
duffmt6
noke2012 Stewart is a comedian and shouldnt be taken seriously. If comedy central is where you get the majority of your news from then you are a moron.

Where did anyone say they get their news from him? Also, when did he ever claim to be a news outlet (he has done the exact opposite)?

He is a comedian who happens to make social commentary. He leans left (pretty far left) but he by no means holds his punches when it comes to liberals looking like idiots. If you don't find him funny then that's fine. I don't find Dane Cook funny. If you think he somehow is manipulating people by pointing out the absurdity that exists in American media and politics come from an openly liberal viewpoint, then you need to take off the tin foil hat (ANT). Comedy is simply one of the most creative and effective ways of commenting on society, and Stewart is pretty good at it, whether you agree with his points or not.

this pretty much sums it up. Stewart makes it pretty well known that he is not a news anchor. In fact i'm pretty sure he has re-enforced that multiple times on his show. I watch the show because it's funny. I don't watch it to stay informed on current events (although i'm sure are more informed as a result, which is in no way a bad thing)

 
ANThttp://www.rasmussenreports.com/public_content/lifestyle/entertainment/…

1/3rd of American youths are being brainwashed by this radical left wing fake news anchor.

This doesn't refute anything I said because nowhere in the thread does anyone indicate they get their news from him. What is he supposed to do? Stop taping his show because people choose him over traditional media outlets?

There's probably another 1/3rd being "brainwashed" by the "radical" right wing FOX News.

No one is stopping Dennis Miller from having a successful night time show.

Not everyone watches BBC.

Nor surprised this is a Rasmussen poll...

That is all.

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 
JeffSkilling
ANThttp://www.rasmussenreports.com/public_content/lifestyle/entertainment/…

1/3rd of American youths are being brainwashed by this radical left wing fake news anchor.

http://www.politico.com/news/stories/0110/32039.html

1/2 of Americans in general are being brainwashed by this radical right wing political organization masquerading as a news outlet.

FTA: There was a strong partisan split among those who said they trusted Fox — with 74 percent of Republicans saying they trusted the network, while only 30 percent of Democrats said they did.

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 
ANTThe entire point of this thread is that Leibowitz did a piece on the private equity industry. My comments are not directed towards anyone in this post, just in general.

Duff Toast, don't roll up in a post without having a clue what is going on.

Read the whole thread, responding to what you were bitching about. Not sure what you are hinting at.

And yes, calling Stewart Leibowitz does make you sound like a huge tool.

"For I am a sinner in the hands of an angry God. Bloody Mary full of vodka, blessed are you among cocktails. Pray for me now and at the hour of my death, which I hope is soon. Amen."
 
ANTI fail to see why this becomes a Comedy Central is cool because Fox sucks. Where did I bring Fox into this?

They're just applying the same logic you used to bring up a nonissue in this thread--The Daily Show as a news source. Also, +1 on not understanding why you'd refer to someone by a different name than has been used throughout this entire thread for no reason. I don't doubt that you try your best to be very helpful on this website, and you are, but you come off as an angry little man in most of these lengthy opinion threads.

 
jaschen27
ANTI fail to see why this becomes a Comedy Central is cool because Fox sucks. Where did I bring Fox into this?

They're just applying the same logic you used to bring up a nonissue in this thread--The Daily Show as a news source. Also, +1 on not understanding why you'd refer to someone by a different name than has been used throughout this entire thread for no reason. I don't doubt that you try your best to be very helpful on this website, and you are, but you come off as an angry little man in most of these lengthy opinion threads.

Blow me.

People take his shit as if it is a reputable news source, Ive posted the links that bank this up, yet my contention is that he is a comedian and a left leaning one at that. Hence he is a joke and his opinions are incredibly biased and his assertions are not something you should take seriously.

I use his real name because it is his real name. Sorry if facts hurt you.

 
jaschen27 you come off as an angry little man in most of these lengthy opinion threads.
ANT Oh and guess what. I am on this site because I want to be. I help when I want and I express my opinion when I want. I've contributed plenty in the past and do so continually. My 777 silver banana's are proof enough.

Lol.

 

Obama has infected all of your minds. Whenever someone criticizes blatant leftist shit you always blame Bush (or Fox News in this case).

Stay on topic people.

 

Hahaha. I just remembered you talking once about how you really liked watching Hannity, so it isn't a stretch to say that you like getting at least some of your political news coverage from him...and insightful guests like Meat Loaf.

 
XepaCan someone actually systematically break down what John Stewart said and its fallacies? I'd love to hear the counter-argument from someone with more knowledge of the PE industry than me. Thanks!
My pleasure. The law professor that was interviewed was clearly ill-equipped to respond to the questions. Unless he has substantial experience practicing corporate law (particularly PE M&A), he likely lacks an understanding of how PE transactions are structured and the nuances that prevent the PE group from doing the things that the media have accused them of doing.

The first argument that Jon Stewart makes is that the wealthy are the only ones who are permitted to invest in Private Equity while the rest of the people are left out. This is a terribly inaccurate statement. While it is true that in order to invest in a fund, you generally must be an accredited investor (meaning you have some minimum level of liquid net worth -- I believe it is at least $1 million). The idea is that it protects the "unintelligent" investor from making ill-informed investment decisions, but that can be debated as well. The reality is that the MAJORITY of the investors in PE funds are endowments and pension funds. These endowments and pension funds are essentially used to pay the benefits of the working class (teachers, laborers, etc.) and they use the investment returns from PE firms as a way to meet their pension obligations. If they didn't benefit from large investment returns from PE firms, they would possibly need to cut benefits because they wouldn't be able to pay the retirement packages that they promised.

Thinking more practically, it doesn't make sense to accept tiny investments from individuals in order to form a fund. Think of it this way: If you needed to borrow $20.00 from your friends to invest, would you want to borrow $10 from 2 friends or $0.10 from 200 friends? The later would be incredibly difficult to manage as you'd be getting calls from your friends daily asking for updates on how their $0.10 was performing. Furthermore, the capital in a fund is called on a PER INVESTMENT basis, rather than all at once. The limited partners essentially "pledge" that they will send the money when the general partner needs it to fund an acquisition. In the case of our $20.00, if you were making your first investment for $2.00, would you rather ask 2 friends to send you $1.00 each (for their portion of the total $20.00 commitment), or would you rather ask 200 people to send you $0.01 each for their respective portions? If any of those 200 people were irresponsible and no longer could afford to send you the money that they had pledged, you've got a problem. This situation is highly mitigated by only accepting money from "accredited investors" when forming a fund.

The second argument is that the investors simply pay themselves a large dividend and then let the company go bankrupt. I made a post about why this is not possible -- it can be found here: //www.wallstreetoasis.com/forums/romney-looting-example-please-explain-th…. The summary of the post is that the banks aren't going to permit the private equity firm to dividend cash out of a company and then let the company go bankrupt. The initial money borrowed from the banks is used to fund the actual purchase of the company (hence, LEVERAGED buyout). The banks will only permit the private equity group to issue a dividend to themselves if the banks, in their detailed assessment, believe that the company will not be able to pay back the loan. Otherwise, they will block the dividend.

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 
CompBanker
XepaCan someone actually systematically break down what John Stewart said and its fallacies? I'd love to hear the counter-argument from someone with more knowledge of the PE industry than me. Thanks!
My pleasure. The law professor that was interviewed was clearly ill-equipped to respond to the questions. Unless he has substantial experience practicing corporate law (particularly PE M&A), he likely lacks an understanding of how PE transactions are structured and the nuances that prevent the PE group from doing the things that the media have accused them of doing.

The first argument that Jon Stewart makes is that the wealthy are the only ones who are permitted to invest in Private Equity while the rest of the people are left out. This is a terribly inaccurate statement. While it is true that in order to invest in a fund, you generally must be an accredited investor (meaning you have some minimum level of liquid net worth -- I believe it is at least $1 million). The idea is that it protects the "unintelligent" investor from making ill-informed investment decisions, but that can be debated as well. The reality is that the MAJORITY of the investors in PE funds are endowments and pension funds. These endowments and pension funds are essentially used to pay the benefits of the working class (teachers, laborers, etc.) and they use the investment returns from PE firms as a way to meet their pension obligations. If they didn't benefit from large investment returns from PE firms, they would possibly need to cut benefits because they wouldn't be able to pay the retirement packages that they promised.

Thinking more practically, it doesn't make sense to accept tiny investments from individuals in order to form a fund. Think of it this way: If you needed to borrow $20.00 from your friends to invest, would you want to borrow $10 from 2 friends or $0.10 from 200 friends? The later would be incredibly difficult to manage as you'd be getting calls from your friends daily asking for updates on how their $0.10 was performing. Furthermore, the capital in a fund is called on a PER INVESTMENT basis, rather than all at once. The limited partners essentially "pledge" that they will send the money when the general partner needs it to fund an acquisition. In the case of our $20.00, if you were making your first investment for $2.00, would you rather ask 2 friends to send you $1.00 each (for their portion of the total $20.00 commitment), or would you rather ask 200 people to send you $0.01 each for their respective portions? If any of those 200 people were irresponsible and no longer could afford to send you the money that they had pledged, you've got a problem. This situation is highly mitigated by only accepting money from "accredited investors" when forming a fund.

The second argument is that the investors simply pay themselves a large dividend and then let the company go bankrupt. I made a post about why this is not possible -- it can be found here: //www.wallstreetoasis.com/forums/romney-looting-example-please-explain-th…. The summary of the post is that the banks aren't going to permit the private equity firm to dividend cash out of a company and then let the company go bankrupt. The initial money borrowed from the banks is used to fund the actual purchase of the company (hence, LEVERAGED buyout). The banks will only permit the private equity group to issue a dividend to themselves if the banks, in their detailed assessment, believe that the company will not be able to pay back the loan. Otherwise, they will block the dividend.

COMP - thanks for this.

 
Best Response
CompBanker [awesomeness]

Thank you. I wish this could be effectively communicated to the general public.

Individual investors are even able to get into these investments through funds-of-funds, which generally do not require accredited investor status (and perform some level of due diligence).

Private equity is inherently ill-suited to low net worth investors, just because that capital is locked up for 3-5 years. Same with hedge funds (which oftentimes can suspend redemptions). It doesn't make sense to put money that you might need where you cannot get it. If you have $1 million floating around, you can likely afford some degree of illiquidity.

What about long term savings? Like retirement funds? They are already with PE firms. The system only works because they can get above market and/or uncorrelated returns via alternatives. Otherwise pensions would be hilariously underfunded after this period of 0 growth.

And am I the only person who suspects that, if small investors were allowed to put money into PE funds, we would be seeing headlines about "predatory fundraising practices"? I can see the headline: Single mother being evicted from home, even though she has $50,000 in savings!

 

I watch Hannity just to fill my daily anti Obama quota. I think he is annoying otherwise.

Outside of an occasional refueling of the hate tank I don't watch any news. Ill read Bloomberg online or The Economist. Day to day news is a waste.

 
ANTWho gives a fuck. It is his real name.

Furthermore, what are you doing back in this thread. More trolling I assume?

Back in this thread? That was my first post in this one, chief.

MM IB -> Corporate Development -> Strategic Finance
 

Oh and guess what. I am on this site because I want to be. I help when I want and I express my opinion when I want. I've contributed plenty in the past and do so continually. My 777 silver banana's are proof enough.

 

Screw all these news stations in general. Fox, NBC, Stewart, etc....I get my information from my own research, not some random ill informed journalist spewing a 30 second summary of what they understand of an issue-which is mainly just rhetoric.

The only good parts of any of these shows is when they interview actual specialists in a field.

If you rely on these stations, or any news stations, news papers, etc. for anything but headline news, I feel sorry for you.

 

I mostly lurk on this forum and see no point in posting. With that said, reading ANT's stuff, I felt obligated to log in. ANT, on these political discussions u come off as childish, and this is a prime example. First off, calling Stewart by his actual name is fine, but the way u portray his name makes it come off as an insult, as if u are attempting to use his Jewish surname as some sort of stain on his credibility. Also, u keep repeating the same tripe about Stewart being just a liberal comedian who can not be taken seriously as if his job title automatically excludes him from political debate. Like others said, Stewart never claims to be an anchor, but that does not mean his opinion is any more or less valid than anchors on major news outlets. For you to claim you watch Hannity to fill your "Obama Hate" quota and then turn around and criticize Stewart for having lack of credibility is laughable. You hold Stewart's bias against him, claiming that it makes his opinion irrelevant, yet u regard Hannity's as anything but propaganda? Is it because he subscribes to your point of view? There is no impartiality in anything you've said, the fact that u write off Stewart and acknowledge Hannity just because Hannity is spewing the"hate" u enjoy should, in itself, illustrate to u just how pedestrian/immature your political mind is.

 

1) I used his real name because it is a) his real name and b) the fact that he uses a fake name is silly and stupid. There is no anti jewish bias in Hollywood and most people on TV use their real name. He is a fake and pushed fake news.

2) Many people do not realize this is satire or comedy. 1/4 of young people get their news from The Daily Show. Because they perform comedy in a news theme it can be misleading. Since it isn't news they have none of the obligations that news agencies would have.

3) I think Obama is a horrible president. I think they things he promotes and the things he doesn't do are incorrect and wrong (hurtful) for this nation. Watching someone who bags on the President endlessly pleases me. No where did I say I get my news from Hannity or that I consider Fox to be my go to source. In fact I mention how I rarely watch TV news.

4) I have an opinion and I express it. Just like many others do. I also post often. Sometimes you need to be a little visceral or have hyperbole to your writing. Sorry if I am not mundane enough for you.

Why would their be anything impartial in what I am saying? It is my damn opinion. I think the liberal ideology is wrong and exactly against what made this country great. I think the government fucks up more than it fixes. I think people deserve to keep what they earn. I think the only thing we "owe" anyone in this country is freedom and opportunity for those hungry enough to take it. I believe in personal responsibility and allowing people to fail and succeed by their own merits.

So, in conclusion, blow me. I've been on this site for 3 years now and have helped countless people. I spend hours on the phone with people, reply to hundreds of emails and PM's a month, have met numerous people and paid my dues. If I want to rant and discuss a topic I will do so.

And what is this trite, pedestrian, passive aggressive insult bullshit. All these little bitter insults from people who disagree with my point of view. Get real.

 
ANT1) I used his real name because it is a) his real name and b) the fact that he uses a fake name is silly and stupid. There is no anti jewish bias in Hollywood and most people on TV use their real name. He is a fake and pushed fake news.

2) Many people do not realize this is satire or comedy. 1/4 of young people get their news from The Daily Show. Because they perform comedy in a news theme it can be misleading. Since it isn't news they have none of the obligations that news agencies would have.

3) I think Obama is a horrible president. I think they things he promotes and the things he doesn't do are incorrect and wrong (hurtful) for this nation. Watching someone who bags on the President endlessly pleases me. No where did I say I get my news from Hannity or that I consider Fox to be my go to source. In fact I mention how I rarely watch TV news.

4) I have an opinion and I express it. Just like many others do. I also post often. Sometimes you need to be a little visceral or have hyperbole to your writing. Sorry if I am not mundane enough for you.

Why would their be anything impartial in what I am saying? It is my damn opinion. I think the liberal ideology is wrong and exactly against what made this country great. I think the government fucks up more than it fixes. I think people deserve to keep what they earn. I think the only thing we "owe" anyone in this country is freedom and opportunity for those hungry enough to take it. I believe in personal responsibility and allowing people to fail and succeed by their own merits.

So, in conclusion, blow me. I've been on this site for 3 years now and have helped countless people. I spend hours on the phone with people, reply to hundreds of emails and PM's a month, have met numerous people and paid my dues. If I want to rant and discuss a topic I will do so.

And what is this trite, pedestrian, passive aggressive insult bullshit. All these little bitter insults from people who disagree with my point of view. Get real.

he mad

 

Why is it "silly and stupid" to use your middle name as your last - if you don't like it?

I mean, it's not as though the dude is denying his identity. On the contrary, he pretty much mentions it all the time. Don't really think that categorizes him as a fake.

Everyone's entitled to their own opinions. You're obviously more emotional about expressing them. I guess that keeps things interesting... thanks?

taken from wikipedia - "He has implied that the name change was actually due to a strained relationship with his father, with whom Stewart no longer has any contact."

 

when did I disagree with u? I did not state an opinion. I simply exposed your opinion as hypocrisy (giving credibility to a hack like Hannity b.c he subscribes to your views and denying John Stewart credibility b.c he doesn't). You are not disputing Stewart's thoughts, rather, you are just attacking his character and using that to invalidate his opinion and that is nonsense.

 

Where did I ever give credibility to Hannity. I like watching him shit on Obama. How is that giving credibility?

Stuart is a left leaning, liberally biased comedian. Just as Hannity is biased and not a credible news source, so is Stuart.

Where did I ever say Hannity is credible?

 

so...

then what's your problem?

people watch Stewart because they enjoy it when he shits on Politicians (mostly republicans.)

I would say the "news" channels have perpetrated a much greater offense. Unlike Stewart, they DO have the obligations which you've mentioned. Yet, they still carry on with this circus show.

You should be just as angry at Fox "news" for spreading propaganda - even if you agree with their sentiment. Instead you're tuning in daily for you fix, and practically boasting about it. I'm willing to bet that a lot more people get their news from the talk-shows on fox and msnbc than they do from comedy central, so let's worry about that first.

 
febreezeso...

then what's your problem?

people watch Stewart because they enjoy it when he shits on Politicians (mostly republicans.)

I would say the "news" channels have perpetrated a much greater offense. Unlike Stewart, they DO have the obligations which you've mentioned. Yet, they still carry on with this circus show.

You should be just as angry at Fox "news" for spreading propaganda - even if you agree with their sentiment. Instead you're tuning in daily for you fix, and practically boasting about it. I'm willing to bet that a lot more people get their news from the talk-shows on fox and msnbc than they do from comedy central, so let's worry about that first.

this about sums it up

 

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Debitis voluptas non velit vitae. Ut a enim ut eum est. Odit sunt non ipsam quas aliquid rerum fuga. Et soluta modi velit quia. Error eaque provident ut non et. Et et nemo et unde. Quos in assumenda magni aut qui qui molestiae.

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