RP Capacity

Credit Investor

[RP Capacity @RPCapacity]

@VariantMkt Could you share the letter?

[RP Capacity @RPCapacity]

@_davidlindhagen @HatfieldCapital Would you be able to share?

[Dimes Square Holdings LP @rvc330]

laughed out loud

[Nancy Spumoni @bushido_thot]

This country is run like a Papa John's franchise

[Daniel S. Loeb @DanielSLoeb1]

Every investor listening to administration description of tariff policy.

[RP Capacity @RPCapacity]

@cfo_mm Interested but can’t DM

[junkbondinvestor @junkbondinvest]

Associate explaining why they accepted all of the sponsor’s EBITDA add-backs even though half are clearly accounting fraud:

[RP Capacity @RPCapacity]

@spooky_JL This is what every junior tells themselves upon preparing yet another data room read out with the same 20 Excel analyses

[sophie @netcapgirl]

private equity is different than i expected

[RP Capacity @RPCapacity]

@BoringBiz_ @piktoggle_ But this is a myth that doesn’t exist. The guy who makes partner at 35 got there through some combo of grind, luck, and being sharp elbowed and won’t spend the time to teach basics to a junior

[RP Capacity @RPCapacity]

@BabaGhanoushLLC 20MM net worth at 30? How?

[Turner Novak 🍌🧢 @TurnerNovak]

the last thing you see before getting offered $300k for 40% with a 3x liq pref, super pro rata, and board control

[RP Capacity @RPCapacity]

@jay_21_ I think it’s mostly random undifferentiated middle market PE firms that have been raising the same sized fund for years and with meh track records. Usually wealth and connections of founders driving the existence so terminal risk after they retire

[RP Capacity @RPCapacity]

@FrankieFF_ @jay_21_ Adversely selecting into shittier deals bc your diligence process is annoying / not commercial / off mkt and ppl don’t want to deal with you is a classic. It’s like the investing equivalent of the low mid high IQ bell curve meme

[RP Capacity @RPCapacity]

@StealthQE4 Isn’t this basically a fixed indexed annuity? The catch is the cost of the insurance outweighs the benefit over the long run

[RP Capacity @RPCapacity]

@jay_21_ The stats on how DPI is down, etc. are cool, but this chart above is kinda bs and just this ares team talking their book. Sponsor debt market is back to '21 levels on pricing / docs (if not worse) and people are doing up to 6x lvg. or higher with PIK toggles

[RP Capacity @RPCapacity]

@createthisbiz Curious why? If you can get more debt, all things equal, it’s always better for the sponsor. If you over lever the business you can always go and put in more equity to fix the cap stack and get to the same place you would have started had you put in that equity to begin with

[RP Capacity @RPCapacity]

@Larryjamieson_ HIG lol

[RP Capacity @RPCapacity]

@carrynointerest Huge difference in who can do the deal beteeen $5 and $10. Pricing depends on LTV and FCF conversion. If this is a 6x business at $5mm with lots of capex that’s very diff than if it’s a 10x biz at $10mm of EBITDA and still decent FCF conversion

[Prepared Remarks @P_Remarks]

Imagine you spent your teenage years, early 20s, and mid 20s grinding through AP studying, SATs, top 10 college coursework, an investment banking analyst stint, and maybe a PE gig all to end up in a small conference room w/30 ppl asking how AI impacts selling dog food