Monday Mouth-Off
The sky is blue, Apollo Management has agreed to pay Huntsman Corp. $1 billion (it could have been worse) and in one week I’ll be on a plane to Costa Rica. In other words, it’s time for some Monday Mouth-Off. *** First up is Mr. X, regarding my comment that a recent move by Permira could be the beginning of buyout fund size cuts: “If I’m reading that right, that’s not cutting the fund. That’s taking advantage of your LPs who are capital constrained. If my funds with portfolios acquired at 10x EBITDA tried that, I’d tell them to off.” Albert adds: “Permira should be ashamed of itself for abusing a loyal LP in this manner.” I agree with both comments, and should have done a better job reading the (not so) fine print. *** SH on layoffs at The Carlyle Group: “This strikes me as horribly misaligned with LPs, unless there is a corresponding cut in mgt fees or a reduction/release of fund committed capital. Generally speaking, how can firms
