Giannini: Private investors overemphasize entry valuation to their own detriment
Mario Giannini · Mario Giannini – View from the Top of Private Equity at Hamilton Lane (Capital Allocators, EP.262) · Jul 18, 2022 · at 31:33
Hamilton Lane CEO Mario Giannini discusses the importance of entry valuations in private equity buyouts, citing advice from Teddy Forstmann.
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“And so I think from a pricing perspective, we spend so much time on pricing and obsess on it as the only thing that matters, and it just is not. It's important, especially at the extreme. So late last year, especially in some of the high growth areas, you kind of looked at things and went, God, it's got to be priced to perfection in order for this deal to work. So then price does matter, and I don't want to minimize it, but we really obsess on pricing to the detriment, I think, a lot of times on a decent investment.”
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