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<blockquote style="position: relative; padding-left: 55px;"><section><a href="https://mastodon.social/users/pyperkub/statuses/110827764326644620">Pyperkub (pyperkub@mastodon.social)'s status on Tuesday, 08-Aug-2023 18:19:30 JST</a><a href="https://mastodon.social/@pyperkub" title="pyperkub@mastodon.social"><img src="https://gnusocial.jp/avatar/95259-48-20230317234349.webp" width="48" height="48" alt="Pyperkub" style="position: absolute; left: 0; top: 0;">Pyperkub</a><div><a href="https://mastodon.social/@pyperkub/110827752956717256" rel="in-reply-to">in reply to</a><ul><li><li><a href="https://gnusocial.jp/user/63125" title="heavenlypossum@kolektiva.social">HeavenlyPossum</a></li><li><a href="https://gnusocial.jp/user/158565" title="alexander_anotherskip_davis@dice.camp">Alexander_Anotherskip_Davis</a></li></ul></div></section><article><p><a href="https://kolektiva.social/@HeavenlyPossum">@HeavenlyPossum</a> <a href="https://dice.camp/@Alexander_Anotherskip_Davis">@Alexander_Anotherskip_Davis</a> <a href="https://mamot.fr/@pluralistic">@pluralistic</a> And then realize even **THAT** scam isn't enough, and needs more scams: <a href="https://pluralistic.net/2023/07/20/continuation-fraud/" rel="nofollow noreferrer">https://pluralistic.net/2023/07/20/continuation-fraud/</a></p></article><footer><a rel="bookmark" href="https://gnusocial.jp/conversation/1921940#notice-3772989">In conversation</a><time datetime="2023-08-08T18:19:30+09:00" title="Tuesday, 08-Aug-2023 18:19:30 JST">Tuesday, 08-Aug-2023 18:19:30 JST</time> <span>from <span><a href="https://mastodon.social/@pyperkub/110827764326644620" rel="external" title="Sent from mastodon.social via ActivityPub">mastodon.social</a></span></span><a href="https://mastodon.social/@pyperkub/110827764326644620">permalink</a><h4>Attachments</h4><ol><li><label><a rel="external" href="https://gnusocial.jp/attachment/1381298">Snip from article:
"But there's no depth too low for PE looters to sink to. They've found an exciting new way to steal from their investors, a scam called a "continuation fund." Writing in his latest newsletter, the great Matt Levine breaks it down:https://news.bloomberglaw.com/mergers-and-acquisitions/matt-levines-money-stuff-buyout-funds-buy-from-themselvesHere's the deal: say you're a PE guy who's raised a $1b fund. That entitles you to a 2% annual "carry" on the fund: $20,000,000/year. But you've managed to buy and asset strip so many productive businesses that it's now worth $5b. Your carry doesn't go up fivefold. You could sell the company and collect your 20% commission – $800m – but you stop collecting that annual carry.But what if you do both? Here's how: you create a "continuation fund" – a fund that buys your old fund's portfolio. Now you've got $5b under management and your carry quintuples, to $100m/year. Levine dryly notes that the FT calls this "a controversial type of transaction""</a></label><br><a href="https://files.mastodon.social/media_attachments/files/110/827/760/572/745/298/original/429dc52f9d28d1d0.png" rel="external">https://files.mastodon.social/media_attachments/files/110/827/760/572/745/298/original/429dc52f9d28d1d0.png</a></li><li><article><header><div>No result found on File_thumbnail lookup.</div><h5><a href="https://pluralistic.net/2023/07/20/continuation-fraud/">Pluralistic: Private equity ghouls have a new way to steal from their investors (20 July 2023)</a></h5><div> from <span>Cory Doctorow</span></div></header><div></div><footer></footer></article></li></ol></footer></blockquote>

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Pyperkub (pyperkub@mastodon.social)'s status on Tuesday, 08-Aug-2023 18:19:30 JSTPyperkub
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@HeavenlyPossum @Alexander_Anotherskip_Davis @pluralistic And then realize even **THAT** scam isn't enough, and needs more scams: https://pluralistic.net/2023/07/20/continuation-fraud/
In conversationTuesday, 08-Aug-2023 18:19:30 JST from mastodon.socialpermalink
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1. Snip from article: "But there's no depth too low for PE looters to sink to. They've found an exciting new way to steal from their investors, a scam called a "continuation fund." Writing in his latest newsletter, the great Matt Levine breaks it down: https://news.bloomberglaw.com/mergers-and-acquisitions/matt-levines-money-stuff-buyout-funds-buy-from-themselves Here's the deal: say you're a PE guy who's raised a $1b fund. That entitles you to a 2% annual "carry" on the fund: $20,000,000/year. But you've managed to buy and asset strip so many productive businesses that it's now worth $5b. Your carry doesn't go up fivefold. You could sell the company and collect your 20% commission – $800m – but you stop collecting that annual carry. But what if you do both? Here's how: you create a "continuation fund" – a fund that buys your old fund's portfolio. Now you've got $5b under management and your carry quintuples, to $100m/year. Levine dryly notes that the FT calls this "a controversial type of transaction""
  https://files.mastodon.social/media_attachments/files/110/827/760/572/745/298/original/429dc52f9d28d1d0.png
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  Pluralistic: Private equity ghouls have a new way to steal from their investors (20 July 2023)
  from Cory Doctorow

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