Capital Call

Opinions not my own.

[Capital Call @IPO_ratchet]

Technically it’s worth the PV of the cash flows you’ll get from cutting it down

[Just Beth @pinkladyfoxx]

Under capitalism, a tree holds no value until it is cut down.

[Capital Call @IPO_ratchet]

@NorthernGrowth8 @AnabasisCap Tbf that cake must’ve been baked months ago

[Capital Call @IPO_ratchet]

life comes at you fast bruv

[Capital Call @IPO_ratchet]

Deal news: If you can’t sell your company in this environment, you will never be able to sell your company

[Capital Call @IPO_ratchet]

@CAGR_Party @AnabasisCap Potentially more platforms - if multiples compress and aggressive consolidators want to preserve debt capacity, you could see an opportunity for LMM funds to build new platforms (funded with equity) at today's multiples and hope you sell at tomorrow's

[Capital Call @IPO_ratchet]

@AnabasisCap quite a few funds out there levered up to 9x+ through pref with coupons of 11-13% on that pref... that's going to gobble up some IRRs in the next couple years if multiples don't come back

[Capital Call @IPO_ratchet]

All-in interest cost looking higher than the gross IRRs of some PE funds these days

[Capital Call @IPO_ratchet]

Your boss ever make so much money that you immediately have an existential crisis?

[Capital Call @IPO_ratchet]

Losses are never losses until you sell. Onward.

[Capital Call @IPO_ratchet]

@PrefShares Especially if they’re priced off of growth lmao

[Capital Call @IPO_ratchet]

@ThomasWLamont Relationship with LPs - what they claimed their differentiation was when raising the fund, the expectations they’ve set, what kinds of LPs are invested. Additionally fundraising path (will they raise larger funds in the future or do they like their current size range)

[Capital Call @IPO_ratchet]

Feels like we are rolling off of a wave of immunity and everyone who doesn’t have the booster is coming down with COVID right now

[Capital Call @IPO_ratchet]

People are confusing moving very quickly to invest $40m out of a $30b AUM firm as high conviction investing when in reality it is the opposite

[Capital Call @IPO_ratchet]

If the USD is the most inflated currency during this period why haven’t FX rates (e.g. EUR/USD) moved against the dollar?

[Capital Call @IPO_ratchet]

@AnabasisCap Sounds like HSP has some good fintwit coverage

[Capital Call @IPO_ratchet]

Deal news: If you can’t sell your company in this environment, you will never be able to sell your company

[Capital Call @IPO_ratchet]

Long $DECK

[Gavin Baker @GavinSBaker]

The team surprised me and dressed up as me for Halloween.

Tortoiseshell glasses, @Atreidesmgmt buff, grey cardigan, jeans and white Hoka Biondis.

No one will ever convince me that the buff isn’t stylish. A practical, pandemic friendly 21st century cravat.

Happy Halloween!

[Capital Call @IPO_ratchet]

@agarwal You've jinxed us.

[Capital Call @IPO_ratchet]

@DollarDiligent @Post_Market Yes you can

[Capital Call @IPO_ratchet]

@JerryCap Vs. what? ISO? Feels like companies with more payment volume are using Stripe Connect instead. Wonder if the issue is just evangelization vs. headache of becoming a payfac and taking chargeback risk

[Capital Call @IPO_ratchet]

@JerryCap & more tech debt than most sovereign nations

[Capital Call @IPO_ratchet]

@ecommerceshares What’s the gross margin contribution for each side from this sale?