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Interesting - moving from one fund of theirs to another. I'm sure they'll have to do a lot of careful work on pricing the transfer.
by mathattack 8y ago
Interesting - moving from one fund of theirs to another. I'm sure they'll have to do a lot of careful work on pricing the transfer.
- huac 8y agothey actually will have to, because they're going to take outside money to fund the acquiring entity. they have an obligation to those shareholders to price the shares properly as well. i assume the partner who is running the second fund was removed from the first fund in order to resolve that conflict of interest.
- dopamean 8y agoThey have to not screw the new investors in the new fund while providing a fair return for the investors in the old fund. This is seems like there could be serious concerns about a conflict of interest depending on who the investors are. I'm curious to know if there's much overlap in the investor pool.
- mathattack 8y agoI'm pretty sure the KPMG's and PWC's of the world make a lot of money sorting through things like this. :-)