Funds that were unjustly written off
Hi all,
Over my years browsing this forum, I have seen various funds that have been written off and seen as performing badly etc (i.e. the current tech fund hate, amsec, Clearlake, platinum, providence, whatever).
My question is - has anyone seen any of these funds with bad rep on WSO come storming back to prove everyone wrong?
I’ve seen a handful of funds on here get shit on that I know for a fact (know people who work there, know people at large LPs privy to performance data, etc.) are doing fine so take most things on here with a grain of salt.
Any examples ?
Believe cd&r went thru a rough patch and came thru on the other side stronger
You mean around the early 2000s?
Like most other players, they had a though GFC period where the ‘06-‘07 fund looked pretty bad for a period of time but that fund ultimately ended up making solid returns and did not have a single bankruptcy which made them really stand out during in post-GFC fundraising.
Tbh not really the ones that really get shit on recently at least are pretty deserving of the shit — however important to note that the context is often “this is a good firms in many ways BUT some interesting issues are x,y,z” but of course it is rarely framed this way since this is an online forum.
Also another point to remember is even “bad funds” if they are talked about here have generally already made SOMEONE the kind of money we all dream about.
Why is Clearlake written off as a bad fund?
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They are just harvesting management fees at this point, they keep doubling their fund size, a lot of their fund is things where they're basically a co-investor alongside another strong GP and recent performance of things they actually control has been pretty bad, mostly propped up by them playing hot potato moving things into CVs. One of the six or seven CVs recently went bankrupt.
Primarily though it’s because their entire portfolio is on the verge of BK
I'd written off Permira in like 2013 or so, but they've come back roaring. Quite a few funds had rough periods post-2008.
THL too
They had a couple of people pretty good funds after downsizing but not sure about their latest flagship and automation funds. Definitely in a better spot than those other names though
My seniors still shit on those guys majorly, idk why tbh
I would take some of the comments in this forum with a grain of salt (except Clearlake lol). People here might be disgruntled because:
1. They interviewed and didn’t get an offer.
2. They got fired from such place.
3. They work at a competitor and lost a deal or lost a prospect LP to them.
Plus, there’s subjectivity - what some people may say is a great hardworking culture some others will say it’s a sweatshop.
ECP is a decent example. First two funds were pretty horrible but have done very well since while completely rebuilding the brand / credibility
In autem reprehenderit fuga natus quod eos odio. Iusto placeat explicabo corrupti necessitatibus eos est et sint. Quasi molestias expedita dicta ea nam.
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