Buyout World
topic on 1 show · 3 statements across 2 episodes
3 statements about Buyout World, every show
Sullivan: Sourcing managers via peer referrals is harder in buyouts than venture
“That's harder in the buyout world because people are much less prone to be working together. Normally they're competing with each other and A lot of buyout managers, by definition, if someone outbids them for a deal, then that person is stupid. They pay too mu…”
Sullivan: Buyouts cannot tolerate portfolio zeros like venture capital can
“In the venture world, the winners pay for a lot of losers and it's okay to have half your portfolio return nothing. In the buyout world, typically your winners are somewhere between two and a half and four and a half X, and then occasionally maybe you get an o…”
Unlike VC, buyout private equity thrives on multi-tiered secondary sales
“On the flip side, if you go to the buyout world, it's this evolution of man, the lower middle market folks. Get companies, and they sell to the middle market folks, sell to the large cap folks, and you have that virtuous cycle. And actually, you have situation…”