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Met some interesting people at the JP Morgan conference… Michael Ovitz confessed that every idea he had in entertainment he got from his kids.

Henry Kravis (KKR) and Leon Black (Apollo) marveled at the inflow of capital into their LBO business (Those two firms recently raised $7B in public offerings). Leon noted that the LBO business had grown more in the past 18 months than the prior 18 years.

6 responses to “Pom Poms”

  1. Children are such inspiration! Just as those who are young at heart. 😉

    Sometimes, the initiators of change have not been noticed. Growth spurts in a company are worthwhile examining in detail for a good lesson. Such is life in any case.

    I love how you show us those palm trees like a teaser. They are like plume dusters or maybe some feather hats on hidden heads. Fun yet also pretty. Two textures in two shades of green. Shapes well aligned. Very nice.

    Have some jujubes at my page before they are all gone.

  2. Roger Taylor’s 3-years-old son, was his inspiration for composing the classic hit "Radio Ga-Ga"… it was that the toddler, among his first experiences speaking liked to point at the radio speakers and say "radio ga…ga.. goo.. goo…". (roger is Queen´s batterist)

    Children, great muses indeed.

    ps: "batterist" is spanglish for "drummer" ha!) 😉

  3. Interesting. Did Kravis or Black give insight into why the LBO stuff is blowing up so much lately?

    I’ve wondered about it and what underlying dynamics are at work (purely as a layperson who reads the finance pages ,) and its certainly been curious. Sounds like the surge in activity that I’ve noticed isn’t just my imagination :-). Its an area of the business ecosystem that interests me a great deal, but that I don’t really understand.

    …And Ovitz clearly has had the good sense to *listen* to his kids.

  4. Seconding benjiman, I’d be interested in reading more… I’ve been hearing a lot about this, but haven’t figured out what is pushing the trend. I remember seeing a lot of negative press on the subject, and it seems perceptions have shifted towards LBO’s being more legit…

  5. I was just at a conference and met an exec who mentioned LBOs are averaging 9x EBITDA these days. I haven’t done any research to find confirming references, but have no reason to doubt him. Very interesting, in any case.

  6. I just found this: "Is nine the new seven? Leveraged buyout multiples soar towards double digits".

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