Is the PE industry any more ethical than the universal banks?
Ever since Mitt Romney failed to make the economic case for private equity during the last presidential campaign, PE’s public image has been battered even further.
Last year, seven of the leading PE firms in the U.S. paid almost $600 million to settle a class action lawsuit claiming they had rigged the bids in 19 leveraged buyouts between 2003 and 2007 and cheated target company shareholders out of fair market prices for their stockholdings.
Who cares whether the original tipper got a quid pro quo?
Todd Newman and Anthony Chiasson –hedge fund portfolio managers whose 2008 convictions and prison sentences1 for insider trading were just vacated by the Second Circuit Court in New York — can thank a Wall Street insurance analyst by the name of Raymond Dirks for their new-found innocence and freedom.
The deflating effects of underperformance and overregulation
Warren Buffet’s wager with Protégé Partners epitomizes the gloom hovering over the hedge fund industry. In 2008, the Oracle of Omaha bet the New York-based fund-of-funds $1 million that index funds would outperform hedge funds over the next 10 years.
Deutsche Bank just took its most daring step yet to reprogram its workforce. It adopted a policy denying the bank’s top-performing traders plum promotions and fat bonuses if they’re deemed to be “disruptive” or non-team players.
Taking a high-potential start-up to the next level
Angels are investors who finance start-ups after the entrepreneurs have put up their own capital and raised additional funding from so-called friends & family. Angels only invest in new businesses which they believe can return big numbers.