First Round: Oh yes. It will be mine

On legendary guitar-maker Fender's upcoming $200 million IPO

First Round, like many of its dear readers, enjoys the occasional dabble on the stock market. There are few things it likes better than a regulator-busting tip on the latest private equity target from one of its industry chums (only joking, FSA types).
First Round is also aware that investing in the stock market requires nerves of steel, and the ability to make decisions based purely on reason rather than emotion.  

This explains two things. One, why First Round hasn’t made any money on shares since Boo.com was the Next Big Thing, and two, why it is desperate to buy shares in legendary guitar maker Fender, home of the iconic Stratocaster, which recently filed for a $200 million IPO. 

After all, presumably it’s not the only magazine intro section to have spent countless hours during its formative years standing in front of the mirror with a Strat, tie wrapped firmly around the head, grunting through the solo of Brothers in Arms, dreaming of the day it could buy some Class B shares. (Although in retrospect, Money for Nothing might have been a better preparation for its chosen career).  

If only for this reason, First Round is very much the definition of dumb money, as far as this particular offering is concerned – and it fondly imagines that other investors will feel the same. So for Weston Presidio, a Boston- and San Francisco-based private equity group that owns a 43 percent stake in the venerable axe-maker, there’s no need to fret about its return on this one.