Why Public Credit Should Emulate Private Equity In the status quo, public credit compensates based on synthetic revenue rather than total return. In the pro forma, public credit emulates private equity: public credit restructures compensation into a system of profit sharing, and profit sharing is a function of total return. This compensation restructuring solves microeconomic […]
Why IRR trumps ROE: IRR measures Total Return As a performance metric, IRR is fundamentally superior to ROE, since IRR is a measure of total return. While IRR is a cash flow metric, ROE is an accounting metric. Further, IRR is more difficult to manipulate than ROE. The capital account measures performance The capital
Excerpt: Former Apple CEO is the June Luncheon Speaker at the Stillwater Club Michael Spindler was born in Berlin, Germany and holds a B.S. in Electrical Engineering from Technical University in Cologne. In 1980, Michael Spindler joined Apple Inc. as European Manager based in Paris, France. In 1985, he took responsibility for Apple’s International business
An Introduction to Distressed Value [T]he leverage that talent can provide is lessened as a company matures, John Sheldon suggests. While partnerships, by definition, are shaped in the images of the partners ‘and end theoretically when the partners die, a corporation never ends.’ Come hell, high water, or hostile takeover, a corporation is obliged to
Excerpts: John J. Donovan Loses Again In Brining v. Donovan, the latest blow to former MIT business professor, John J. Donovan, Judge Davis held that shareholders in Donovan’s failed internet start-up, SendItLater (SIL), could recover more than $700,000 in attorneys’ fees in addition to a December 2019 award of $1.57 million in damages. Relying on
Is EBITDA a proxy for Cash Flow? Leo Hindery: “We’re the kings and the queens of EBITDA, we’re all about cash flow, pre-tax cash flow, and we try not to pay taxes. And I don’t view that as anything but positive.” Cash flow is measured by the cash flow statement. Cash flow has a multitude
Notes on Michael H. Spindler Although Michael H. Spindler joined Apple in September 1980 as marketing manager for European operations, the native of Berlin, Germany, didn’t pop up on the radar screens of most Apple watchers until January 29, 1990, when he moved to Cupertino to assume the role of chief operating officer, taking over
Excerpts: Former MIT professor from Hamilton found liable for misusing startup’s funds John Donovan Sr., 77, of Hamilton, was using investor funds to pay for country club membership, hair treatments, property tax bills, and other expenses, Judge Brian Davis wrote in his decision, according to a report Wednesday in the The Salem News. Donovan, who
Memorandum to: State Investment Council From: Corey Amon, Director Subject: Proposed Investment in Stellex Capital Partners II LP The Division of Investment (the “Division”) is proposing an investment of up to $125 million in Stellex Capital Partners II LP (the “Fund”). This memorandum is presented to the State Investment Council (the “Council”) pursuant to N.J.A.C.
Memorandum to: State Investment Council From: Corey Amon, Director Subject: Proposed Investment in Silver Lake Partners VI, L.P. The Division of Investment (the “Division”) is proposing an investment of up to $100 million in Silver Lake Partners VI, L.P. (the “Fund”). This memorandum is presented to the State Investment Council (the “Council”) pursuant to N.J.A.C.