The Private Equity for Families Blog

I am stunned by the rapid fire set of initiatives by the Labor Department under the leadership of the ambitious Thomas Perez. In the last six months he has called for changes in the minimum wage, the level of pay that will exempt an employee from overtime and the

Key Private Bank publishes periodic updates on sectors of the economy they cover from an equity research standpoint. In one of their latest publications “Key Perspectives: Energy Outlook March 2016 – Revisiting Lower For Longer” Stephen Hoedt wrote an update on his publication from November regarding the duration of

I participated in a one day strategy session for one of our portfolio companies where the lunch time entertainment was a You Tube video of Patrick Lencioni speaking about his business bestseller “Overcoming the Five Dysfunctions of a Team”. I don’t know if our facilitator was suggesting our management

I have noticed one constant about confirmed retirees. Universally, they rarely talk about what they did for their careers. I mean almost never. I have met, played golf with, played tennis with, skied with, gone to dinner with and had a few beers with an assortment of people who

Whenever there is something written about Seth Klarman, or even more importantly, when the man speaks himself, I stop whatever I am doing to read or listen. Mr. Klarman is the founder of Baupost Group which is one of the best performing hedge funds of all time. What I

The cost of an education in Chicago is going up. In its weekly fixed income update Wasmer Schroeder, a fixed income manager with offices in Cleveland and Florida, announced a failed financing: “The Chicago Board of Education attempted to bring $874 million in bonds to market last week, with

Make Sure You Locate the Cashier A trip to Las Vegas is always interesting. If you are willing to trade light deprivation, sensory overload and spacial disorientation for free drinks, great people watching and endless opportunities to lose money, this is nirvana. Recently, I had the opportunity to spend

I love it when our country comes together as it did last Wednesday night. There was so much expectation after a long hiatus.  There were long lines in Washington especially around the Capitol where Republican and Democratic campaign fundraising had stalled.  Planning for what we would do with $930

I am a constant and unapologetic advocate for the private equity asset class for many reasons: Alignment of manager and investor Prudent use of leverage Interest rate and tax environments have been supportive Own an asset that makes something or provides an essential service Businesses create and preserve jobs

It is a rare treat to spend 4 hours in a car with an 85 year old electrical engineer. The CapitalWorks model of involving industry savvy limited partners in our portfolio governance gave me that chance. Aside from the frequent rest stops (me not him) on the way to

The Wall Street Journal reported on December 10, 2015 that the founder of Bitcoin may have been discovered in Australia. Satashi Nakamoto may actually be Craig Steven Wright. Mr. Wright’s home was raided on a tax matter relating to his business. Mr. Wright’s company, DeMorgan Ltd. describes itself as

There is always an opportunity to read great business literature. Warren Buffet’s investment partner, Charlie Munger, is quoted as saying “In my whole life I have known no wise people (over a broad subject matter area) who didn’t read all the time—none, zero.” Foundational Reading Great business literature comes

Peggy Noonan has been my favorite journalist since 1999. In the centennial issue of Forbes, a group of thought leaders were asked to write about the forces that would shape the 21st Century. Their enthusiasm for technology, ecology, and emerging economies was everywhere. I was beaming with optimism when

Two weeks ago we announced an acquisition of a family business that specializes in handling hazardous waste streams for industrial customers. This is a difficult technical business where there is absolute legal liability for improper disposal of a waste stream once you have accepted it.  In order to protect

In Bonfire of the Vanities Thomas Wolfe’s main character is a bond trader named Sherman McCoy. When Sherman’s daughter, Campbell, asks her father what he did for work and Sherman fumbles the reply, his wife, Judy, delivers the now famous golden crumbs analogy: “Just imagine that a bond is

Last week two debt rating agencies downgraded the creditworthiness of the State of Illinois. Moody’s downgraded the State from ‘A3’ to ‘Baa1’ while Fitch downgraded them from ‘A-‘ to ‘BBB+’. Illinois has yet to pass a budget. Fitch listed ongoing budget gaps, high unfunded pension liabilities and reduced financial flexibility

I often write about business models that I admire or ones that present unforeseen risks. You all know my opinion about the perfection of the Private Equity business model not only for its superior returns but also for its long term orientation and its alignment of manager and investor.

One of my college friends served as the general counsel of a major mutual fund company. When we talk about our respective businesses and business models he often comments on how lucky PE managers are because they do not promise daily “liquidity” to their LPs. By contrast, the biggest

I just received a note from the desk of the Chief Investment Officer of Wasmer, Schroeder & Company, Michael J. Schroeder, entitled “Has the Fed Become Irrelevant?” Mr. Schroeder’s firm specializes in fixed income and we got to know their portfolio managers because we had offices on the same

The European refugee crisis reminds us that a small disruption with frightening end game consequences (death, cultural cleansing and slavery) can set in motion larger trends with equally horrifying consequences. The European refugee exodus will impact neighbors for the rest of this decade. So, too, are the economic effects