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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (55164)	10/30/2004 8:36:15 PM
From: Taikun	Read Replies (1) \| Respond to of 74559

Jay Yeah, due to pride or too much hope, many PE funds will keep a portfolio company on life support way past the expiration date. These 'walking dead' may be held at book value or even above, to show a positive IRR, but will never result in a distribution for the Limited Partners. If it could be done, it would be kind of like buying into an oil and gas co pre-trust only to find out post-trust that all the BOE/day output goes to the ExploreCo. Maybe they'd announce some increase in P+P reserves but no output so no distributions. Now wouldn't that raise eyebrows? David