03/03/2008

Bankers? We don't need no stinkin' bankers!

Hello:

Just as Humphrey Bogart was told in "Treasure of the Sierra Madre" by a vigilante that they "don't need no stinkin' [sheriff] badges", private equity funds are making a similar announcement to Wall Street Bankers.  While Wall Street sources of capital are preoccupied with staunching the bleeding of subprime investments gone awry, private equity funds are looking for new sources of funding for their merger and acquisition deals.

According to the Financial Times, David Rubenstein, head of the Carlyle Group, told there were four main sources of alternative debt financing: Sovereign Wealth Funds (SWF), Public Pension Funds, Hedge Funds and Mutual Funds. Furthermore, Guy Hands, head of Terra Firma, another private equity firm, said the Abu Dhabi Investment Authority, the world's biggest SWF, "will effectively replace Wall Street" [for investment banking deals].

We believe this is further evidence of the quickening pace of business due to improved communication methods afforded to us through the internet. With information more rapidly available, and electronic conversations occurring 24/7 around the world, old methods of doing business are being sidestepped.  So maybe, until the Wall street investment bankers recover, current business deals "don't need no stinkin' bankers."

Is your organization receiving many gifts of real estate? Maybe it is time to develop a written gift acceptance policy, so that your organization can accept, or not accept a gift of real estate in a knowledgeable and gracious manner. Please contact us for more information.

 

Terri G. Millson, CIMA, CIMC President

Ray Dicius, CSA, GEPC LPL Branch Manager