Sketchiest PE Shops
What are the least ethical PE shops y'all have come across? It seems like there's some pretty shaddy shops out there.
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LOOOOOOOOOOOL TROOOOOOOOOOLLLLOOOOO
Why has every reference to Arrowroot Capital been deleted from this thread? Did the posters receive threats?
Unfortunately
Can you comment safely what exactly is the issue with Arrowroot?
Its seems as though their PR budget literally 3 X their deal sourcing budget in terms of software.
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Whatever the equivalent of Tobin or Saloman Sisters is
Tony Romo was the beast quarterback in cowboys history
Could you guys develop about Arrowroot Capital
Deleted
Bump about Arrowroot capital, seniors seem to have pretty solid backgrounds
Wtf happened to this thread?
Fr
Platinum equity
Hig
I hear platinum equity had a shady start. But what’s wrong with HIG?
Wait, what's wrong with Platinum? Thought they're one of the best shops on the west coast.
Hard to say given I'm not sure what you mean by least ethical. Do you mean shops which financially engineer their portcos via headcount reductions and aggressive opex cuts in order to juice cash flow? Or do you mean shops which generally are involved in shady businesses/companies which generate bad PR?
So Arrowroot and HIG? LOL
nice try elizabeth warren ;)
What's wrong with Arrowroot?
I'll bite - American Securities is invested in GTL, a prison phone company that gouges prisoners and their relatives for calls. Pretty high on my list of scummy PE behavior.
Only an issue for regular day people. Could careless criminals getting charged more.
Ah yes, because our justice system is so well known for putting the right people in prison. Surely everyone in prison is a raging murderer who belongs in there, right?
The vast majority of people in prison belong there, yes
Found the 13%er
-
In terms of actual sketchy shit, there's Cardone Capital which is a real estate "fund" (basically crowdsources commitments from non accredited schmucks and promises a 15% return). Lots of complaints from people trying to get their money out.
I hate this guy so much. I see his IG posts daily. Reminds me of Wall Street Mastermind, praying on vulnerable people trying to reach financial stability.
10X!!!
Cerberus
Gamut
Elaborate on Cerberus?
Not OP, but they're just sleazy. When people think of private equity as vultures who come in and lay 30% of people off, etc etc. - they're thinking of Cerberus. They're a very legit shop though.
Historically they've had a bad rep and a lot of times when sponsors see them on the cap table (usually a nasty mezz piece or in equity) there was definitely some hesitation if they're gonna be sharing cap table. That being said they've done a lot of work to clean up their image. I've heard they had a lot of trouble raising their actual PE fund relative to their target.
Fundless sponsors with no track record. Usually one or two guys running around knocking on doors. Basically door to door sales.
There are A LOT of those.
I know of a fundless shop run by a guy who’s background consists of being a “Sales development analyst” (cold calling) and starting a business that was literally a taxi service with like 2 cars and a scooter. Now he’s the founder and only team member of this sponsor and it trying to recruit my friend for an internship that “will not entail modeling”…. Stay away from these guys
Ol' wilbur allegedly screwed over his own employees:
https://www.forbes.com/sites/danalexander/2017/11/15/three-former-colle…
Hands down: Overbay aka Optimize aka Setter
Why so? Aren't they buying tail end fund stakes for sizeable discounts on NAV?
false
digital alpha - avoid at all costs. obvious from the turnover
Any more context as to why? I interviewed with them years ago and would have been one of the earliest hires.
leadership has chased almost everyone away if you look at the linkedin turnover. Most people don't stay beyond 18 months at all levels. horrible retention creates low morale.
777 Partners
Any more insights? Looks like an interesting place. Seen them buying sports clubs, etc.
Investments losing money across the board, unsophisticated and over-aggressive leadership. The attempt to emulate Berkshire/Apollo's insurance strategy has largely flopped (as the poster mentioned below) and they're now just focusing on sports investments for social media clout.
Anything associated with Highland Capital, its successor funds, or James Dondero.
anything in Miami that got there prior to 2020
777 Partners is a joke. I entered shit processes to get reps for firms I actually wanted and their pitch was “Are you familiar with Berkshire Hathaway? We’re like them, but on a smaller level”.. no, sir, you are not…
Are you familiar with Berkshire Hathaway we are like them but way less successful and relevant .
Platinum
Gores
HIG
777 Partners
Cerberus
Apollo
Blackmore Partners
How is Platinum, H.I.G., and Apollo on here? Literally have some of the best returns in the business.
Because tons of people refuse to do business with them. I've worked with companies that frankly refused to let them participate in a process based on their reputation and previous interactions with them.
Have heard some horrible stories about HIG culture, despite the strong returns.
I'm guessing reading thread titles isn't your strong suit.
Blackstone has the best catered lunches!
Whitehorse lol
This
If HIG doesn't win this argument idek what to do. Fellas be throwing out lowball offers like Rick from fucking Pawn Stars. All fun and games until you realize that most of the time is so they can just join the diligence process and get some inside know how about how their competitors run their businesses. Also known to fuck over their own portcos with massive layoffs and dividend recaps. Returns are good but it's achieved with operational brutality and the souls of their associates who have to diligence every pissant LMM deal that comes across their table that Jefferies throws at em.
Strong feelings from a 1st year lol
Everything stated here is accurate. It’s a scummy shop. I feel bad for people that get affiliated with HIG and then assume all PE groups are like them.
Any more context? Genuinely interested in any firsthand experience
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