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Breakingviews: Ken Moelis' coattail equity

Wednesday, March 05, 2014 - 03:30

March 5 - Jeffrey Goldfarb and Breakingviews editors discuss the investment banker's decision to take his eponymous firm public and the questionable corporate governance involved.

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And -- and investment banker has helped our numbers client to pretty good deal we've saved his best deal for himself. He's taking his investment bank public. And -- but a lot of spoils from software I think -- of that -- -- -- this -- set this -- back in 2007 option. A pretty pretty -- and before and the UBS before that -- think basically it at. DOJ got here is coming out of the deal hit my offensively great revenues -- up and up and up I'm getting decent returns. The -- F mind managing director -- -- honest here. But hey what once -- sell a bit my company buying and have maintained base of people. Exactly what I'm sure his client would love to get this kind of -- -- -- popularity he's acting in the best interest of himself and his partners I don't fault him for that. I mean -- it's unfortunate that the capital markets are so forgiving these days this is this is the kind of government that would make Silicon Valley -- us. You know it's like FaceBook it's sort of at the elements of -- well aren't you afraid that he shares with a B shares carry ten times but it is the ups and you'll hear from so. All of the the partners shares are going to be put into a group called -- apart and holding part all the which he will. -- -- -- you don't show that he had only 50% control there's also other goodies in there there's stuff like he has a nine day non compete which is. Would think if you get back to other predators this week we've -- big illness. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The one point three billion mean Upton Upton left and and -- what is out as names to them. I'll let you know whether we're only about this is it's you know it's like so much of the -- it's coming out from. People like -- and policy is a founder you can argue it's got a pretty strong vision. Very charismatic has built something pretty amazing -- just you know punch in seven years he's big and so I figured you know you're getting a chance not unlike Steve -- when you've got to buy the -- not not actual equity. In Blackstone. It's coat -- equity. You get to ride -- coat -- And you don't want it might actually be a pretty good -- and if you look at these -- numbers the operating numbers for Melissa mean they're they're not a -- eleven million of revenue yeah you know it's grown pretty it's the nationalist elements are furious that so you're getting -- an opportunity to it to. To drag on this could just look at relative to -- which cannot whatever five or like that you know that the difference in what the markets would support. Or shareholders willing directed to pony up forest completely changed but I do expect a lot of what. I'm in the Utica also doesn't have to have a majority of independent directors in the book. Thank you could Greenhill medical setting great and I think said within a year we'll have a majority of independent directors. These guys -- -- three out seven so they getting somewhere that just means there's there's no it is very recalls the shareholders knuckles tilt he'll say we're the majority -- by the -- fair enough. But the model to support it yeah you know look he's he's that shrewd. You know all of us on holding out of the market to support them or revenue stayed decently in theory they traded at discount to agree Nolan and announced they just on -- we get a second element. I don't think investors will -- art we will plenty more to talk about a short with -- more -- you know we'll be back with more breaking news.

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Breakingviews: Ken Moelis' coattail equity

Wednesday, March 05, 2014 - 03:30