tag:blogger.com,1999:blog-8152901575140311047.post1381205664759929911..comments2024-03-29T03:33:47.317-04:00Comments on Musings on Markets: Blackstone's Woes: Some thoughts on Private EquityAswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8152901575140311047.post-11852287657757264272008-11-17T00:43:00.000-05:002008-11-17T00:43:00.000-05:00HiGood point about first principles of finance. M...Hi<BR/><BR/>Good point about first principles of finance. Maybe this topic could be a blog topic in its own right, since I wonder how you could distill these "first principles" of finance into 10 points, and what they would be (out of the myriad of possible answers). It may be a good discussion point as well as to what principles make it to the list.Charles.Widdicombehttps://www.blogger.com/profile/17344222126433674168noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-12951412470410349972008-11-11T02:54:00.000-05:002008-11-11T02:54:00.000-05:00Nice article Prof, unfortunately from where i come...Nice article Prof, unfortunately from where i come from, there are still those who are well connected and influential who swear by the Blackstones and the Carlyles, claiming '...they deliver value. Period.'Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-2050488042575800222008-11-10T11:33:00.000-05:002008-11-10T11:33:00.000-05:00Hi Prof,1.Could you please explain what is the saf...Hi Prof,<BR/><BR/>1.Could you please explain what is the safe boundary line for a company going for debt financing ?<BR/><BR/>2.A company's earnings growth depends on capex and needs debt financing, most of the time. So debt being a necessary evil, what policy measures can save a company from being excessively leveraged ?Deepak Krishnanhttps://www.blogger.com/profile/03406245965037353478noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-87766956873958167842008-11-06T10:49:00.000-05:002008-11-06T10:49:00.000-05:00Read your paper about "The Anatomy of an LBO: Leve...Read your paper about "The Anatomy of an LBO: Leverage, Control and Value". Very good dissection and it would make a classic case study for MBA. The escapade of GS and KKR did cost Harman (HAR) an enormous drop in shareholder value. On September 19, 2007 the price of HAR was 112.30 and on November 5, 2008 it is reeling around $18.00. <BR/>About Blackstone, their quarterly results did turn out to be really bad which was bound to happen as you predicted. Their 'forward looking' statement was that unless market conditions improve, they may have to cut their dividend significantly, or "possibly (declare) no distribution at all."<BR/> I am wary of Private equity funds going public. The ownership and governance structure of publicly traded 'private' equity firm significantly increases agency costs relative to a private 'private' equity firm. Well, what to say, the investors in BX did not beleive that, certainly not the Chinese who made their $3 billion gamble.Saurav Roychoudhuryhttps://www.blogger.com/profile/15717543692051491723noreply@blogger.com