Writing in his latest newsletter, the great #MattLevine breaks it down:

https://news.bloomberglaw.com/mergers-and-acquisitions/matt-levines-money-stuff-buyout-funds-buy-from-themselves

Here's the deal: say you're a PE guy who's raised a $1b fund. That entitles you to a 2% annual "carry" on the fund: $20,000,000/year. But you've managed to buy and asset strip so many productive businesses that it's now worth $5b. Your carry doesn't go up fivefold. You could sell the company and collect your 20% commission - $800m - but you stop collecting that annual carry.

9/

@billyjoebowers @memory Matt Levine, yesterday:

If I told you that US venture capitalists promoted a Ponzi scheme that used a cartoon computer game to steal hundreds of millions of dollars from poor workers in the Philippines and send it to North Korea to fund a ballistic missile program, you probably wouldn’t believe me. Unless I said “… using crypto,” in which case you would probably say “oh yeah that sounds about right.”

#MoneyStuff #MattLevine