Tessa Griffin September 06, 2013
Want to filter through private equity and venture capital news? Here are the top five takeaways through September 6th.
PE Firm Accountability
The First Circuit’s ruling on Sun Capital’s pension liabilities is not the only recent source of private equity concern from pension funds. Monitoring fees and transaction fees (featured in PitchBook’s recent Deal Trends Report) have been a hot topic of discussion in the private equity community. Of note: Several U.S. pensions are calling out a “misalignment of interest” in the transaction fee structure for the 2008 buyout of Caesars Entertainment Corp., and yesterday Dan Primack of Fortune wrote about the death of private equity’s “fee hogs.”
Old vs New VCs
While it is generally agreeable that the venture capital industry has fundamentally changedover the past several years, many are debating whether an old-school classic VC or a value-added platform VC (a la a16z) is most advisable. Sarah Lacy kicked off the discussion (make sure to read the comment thread) and Primack concluded that you shouldn’t judge a VC firm by its model.
Some get in, others get out
MSFT stays newsworthy
Microsoft surprised everyone by completing their Nokia takeover over Labor Day weekend. Unsurprisingly, feelings were all over the board about the acquisition. Optimists were celebrating the affluence of the smartphone market, pessimists made snarky jokes on Twitter, and everyone is wondering what the strategic move will mean for the next MSFT CEO(whom some believe to be Nokia’s chief, Elop).
Zillow’s Rich Barton interviewed with WSJ today on the rise of mobile-first companies. Some noteworthy mobile products were launched/funded this week:
Oyster, a “Netflix for books”, launches the beta version of its mobile app.
Will the new digital wallet from PayPal be simple enough to replace credit cards?