Two weeks ago, Julius Genachowski co-authored a guest post for peHUB, arguing that venture capitalists should support Barack Obama for president. Today, Obama tapped Genachowski to be part of his presidential transition team. Genachowski is a founding partner of LaunchBox Digital, a Washington, DC-based early-stage investment firm and consultancy. He also serves as a special advisor to General Atlantic, a managing director of Rock Creek Ventures and is the former chief of business operations for IAC. There is also talk that Genachowski could end up as Obama’s CTO, if Obama adds
1 min read · 06 November 2008
Need proof that the private equity industry is in a bit of freefall? Just take a look at The Blackstone Group's Q3 financials, which were released earlier this morning. The firm reported a Q3 loss of $502.5 million, compared to a $299.2 million gain in Q3 of last year. This included -$68.3 million for its private equity portfolio, which was mostly attributed to a reduction in the carrying value of its portfolio companies. It also deployed about 35% less limited partner capital. The only bright spot was from the firm's financial advisory practice, which generated
1 min read · 06 November 2008
3 min read · 05 November 2008
We've just released the final batch of tickets for next week's peHUB Shindigs, which begin Tuesday in Washington DC, before moving onto New York City and Boston. Each evening will be a chance to hobnob with local VCs, buyout pros, entrepreneurs, bankers, assorted hangers-on (including yours truly). These are our final events of 2008, and more than 700 tickets have already been sold. They cost just $10 each with proceeds going to charity, so get yours now: Washington DC Tuesday, Nov. 11 http://pehubwashington.eventbrite.com New York City Wednesday, Nov. 12 http://pehubnewyork.eventbrite.com Boston Thursday, Nov. 13 http://pehubbos.eventbrite.com
1 min read · 05 November 2008
2 min read · 05 November 2008
* Matt Cooper: The mystery of President Obama. * James Surowiecki: "I think it’s possible that an Obama election could have a longer-term impact in boosting global markets’ confidence in the U.S., even if it’s also possible that American investors would be happier with McCain." * Paul Kedrosky: It's true that Democratic presidents have produced the best market returns, while new GOP presidents-elect produce better market returns for the year they are elected. But the sample size for both is too small to be significant. * U.S. futures are down, European markets fall and Asian markets rally. * Deal Journal asks M&A attorney Bob Profusek: Will Obama usher in a socialist economy? * The big California ballott initiative was Prop 8, which disgracefully seems to have prevailed. Of more relevance to this space, however, was Prop 7, which would have required state utilities to derive half their power from alternative energy by 2025. It lost, which Chris Morrison argues was a sign of voter maturity.
1 min read · 05 November 2008
1 min read · 04 November 2008
Last week, I criticized Stephen Schwarzman for a speech given at the North American Venture Capital Forum in Quebec City. Part of my complaint was that the Blackstone boss mostly ignored private equity, except for some rosy talk about how the economic downturn should produce good buying opportunities over the next year or two. My bigger bitch, however, was that Schwarzman spent most of his time talking about well-known history (Fannie/Freddie, Bear, Lehman, TARP, etc.), rather than a prescription of what needs to happen next. I suggested he was either being lazy or condescending (to the largely-Canadian crowd), but perhaps he just didn't want to break embargo on an Op-Ed that appeared in today's Wall Street Journal. In it, Schwarzman lays out seven principles to "guide reform, here and abroad." The global bent is particularly important, as Schwarzman correctly emphasizes the troubles that arise
2 min read · 04 November 2008
* Apologies for First Read being a bit late this morning, but there was a line at the polling station. First time I've seen that since moving to the Boston suburbs five years ago. So make sure to vote early, since many judges take a dim view of extended voting hours. And, in the spirit of information, here is a link to Obama's economic page, and one to McCain's economic page. Plus our VC argument for Obama, and our VC argument for McCain. Finally, here are the results of our most recent presidential poll of peHUB and PE Week Wire readers. Happy democracy... * U.S. futures are up, with all eyes on the collective ballot box. * Nouriel Roubini: China is the next financial shoe to drop. * Ready for Spitzer nostalgia? NY Mag on how Client #9 tried to curb the subprime crisis. * Sovereign Wealth Funds adopt voluntary best practices. * Paulson may give some of the $700 billion to GE, CIT, etc? Discipline man, discipline.
1 min read · 04 November 2008
Two weeks ago, peHUB asked some prominent VC supporters of Senators McCain and Obama to explain why other investors should follow their lead at the ballot box. Since today is E-Day, it seems appropriate to put them back on the homepage. Writing in favor of McCain is Bob Grady, founder of Carlyle Venture Partners and a former deputy assistant to President George H.W. Bush. The pro-Obama piece is co-written by Mark Gorenberg, a managing director with Hummer Winblad Venture Partners, and Julius Genachowski, a founding partner of LaunchBox Digital and a special advisor to General Atlantic: Why Venture Capitalists Should Support Barack Obama This is a defining moment in our history and the most important election of our lifetimes. We face unprecedented economic, energy, environmental, and healthcare challenges.Click here to read more about Obama. Why Venture Capitalists Should Support John McCain In his speech at the Democratic National Convention in Denver, former President Bill Clinton correctly said that the two most important issues in this election are the future of the U.S. economy and America’s standing in the world.Click here to read more about McCain.
1 min read · 04 November 2008
