$25mm fund - 2 person
Hi All,
What would you do if you were given a $25mm LMM PE fund to run and you were given 1 analyst to work for you? Would you lever up and invest in a single larger company or would you invest in a handful of smaller companies?
Would you bet your career on one business or several?
Depends on how much leverage and how well the business has been performing, but I'm a risk taker so I'd probably just do one big one and go for broke
How far would you lever up? I'm thinking I'd lever up to about 40mm (15mm in debt) and buy a single business. I feel like the risk and headache would both actually be larger with smaller businesses due to a drop in sophistication for businesses of a lower size
make a move on Evraz, polymetal, or petropavlovsk - YOLO the move all the way and buy the dip
How much I'd lever up is completely dependent on growth profile, EBITDA margin, cash flow, and what banks will allow.
But again, if I had my druthers I'd lever it to the tits
All in GameStop and become the first hybrid PE/HF activist meme stock fund
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