David Toll

Buyout shops have begun requesting clauses in their partnership agreements that let them try to maintain their anticipated level of after-tax profits in the event that proposed tax legislation passes. Some investors are OK with the language, provided it doesn’t affect their own profit stream. But others oppose it. Legislation was introduced in Congress this […]

When buyout shops generate windfall profits by moving outside their usual investment strategies, limited partners applaud their “flexibility and adaptability,” a buyout professional recently told me. Of course, when the strategy fails, limited partners have occasion to use another phrase: “style drift.” In today’s somewhat depressed market, buyout firms have more time on their hands […]

In promoting their firms, buyout pros often point to a troop of hard-bitten executives that can parachute into portfolio companies to perform miracles. These may be full-time operating partners, part-time special advisors, or consultants waiting in the wings. Six sigma this, outsource that, acquire a major rival—these executives deliver advice that can give a powerful […]

Turnaround firms have enough dry powder to support a major offensive. Now the question is whether the downturn they’ve been stockpiling for is finally at hand. Fund-raising by firms that take active roles in distressed situations, either as creditors or owners, has really gathered steam in the last few months. Together such firms have raised […]

While pitching to prospects, fund-of-funds managers point to a trio of industry truisms that help hammer home the value of their products. The first: Median returns are mediocre. If you want to make good money as a limited partner, you have to back top-quartile performers. The second: Top-quartile firms tend to repeat their stellar achievements fund after […]

Last month I launched a personal probe into why more minorities and women haven’t found their way into the lucrative world of private equity. First step was to check in with Willie Woods Jr., an African-American managing director of ICV Capital Partners, a New York-based mid-market buyout shop. In an interview with Buyouts, Woods attributed […]

A recent court case may encourage hedge funds to try to hold out for a bigger payday when they own shares in a company being acquired in a leveraged buyout. And that could force LBO shops to pay more for companies than they bargained for.  Here’s the strategy in a nutshell: Let’s say you’re a […]

Why don’t more women and African-Americans work in the buyout business? Based on my knowledge of industry demographics I’d estimate that at least 500 buyout firms operate in the United States, employing well over 5,000 investment professionals. I don’t know any sure way of getting to the percentage of women and African-Americans. But 10 years […]

I’ve never really liked those lists of recommended books that Amazon.com, based on my past purchases, conveniently supplies on my log-in page. Hey, maybe I’ve moved on from my obsession with model trains to a passion for medieval English gardens, OK? But some good came from the feature this week when the online retailer figured out […]

Say a recession comes, slashing the value of portfolio after portfolio. How long will it take limited partners to see blood spilt on their financial statements? Unfortunately, it could take quite a long time. Many buyout firms still hold investments at cost for at least a year or more unless a subsequent financial transaction justifies […]