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If you’re lacking for track record as a firm, here’s three exercises you should walk through to help turn your pitch and duediligence meetings from guesswork into something more substantive. For example, let’s say I had a more national fund. This is actually easily referenced.
The 77-year-old billionaire told the Financial Times that big asset managers had competed aggressively to lend to the largest private equity groups as money poured into their coffers in 2020 and 2021, raising questions over the duediligence the funds conducted when they agreed to provide multibillion-dollar loans.
James Bradshaw of the Globe and Mail reports Teachers' invests in portable battery company aiming to replace gas-powered generators: Ontario Teachers’ Pension Plan is leading a US$95-million funding round for Instagrid GmbH, a German maker of portable battery systems designed to replace gas-powered generators.
There were financial experiments where the borrower hadn’t been through duediligence. And what we figured out in 2009, really when we started buying homes is that we made the bet that it, I mean, it wasn’t a very exotic bet, but we made the bet that the subprime mortgage market wasn’t coming back at all.
My boss, this gentleman I mentioned had been the Finance Minister of Peru was like, I need you to go down to Peru and take a look at the bank, do duediligence, right, 25 years old. And those people are really important for sourcing deals, doing duediligence on deals, doing duediligence on people.
And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, youd have $334,473 !* billion from one of our large pensionfund clients. If youre worried youve already missed your chance to invest, now is the best time to buy before its too late. Turning finally to asset managers.
And so graduating right into 2009, right out of the financial crisis, I said, I don’t think I’m gonna get a job. Somehow no one in duediligence ever asked them about any of this. And not being able to tell them or show them makes it harder for them to do duediligence to understand how it may have behaved.
And again, some history, until 2009 or ‘10, Warren Buffett actually spoke out against buybacks. DAMODARAN: Or it could be some unique characteristic, pensionfunds pay no taxes. DAMODARAN: We’re going to do our duediligence. We also tell them to do duediligence. RITHOLTZ: He was not a fan.
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