Waking Up With Private Equity

Private equity can be a tantalizingly beautiful concept to an aspiring ship owner. It promises the opportunity to use other people’s money to fund the entirety of a volatile deal. If the market goes the right way, the owner can retire rich and early. If it goes the wrong way, he can still make a lot of management fees before walking away, financially unscathed, knowing that a few year later, once memories have faded and young fund managers have changed jobs, he could likely return to the capital markets for another try.

The reality of the situation, of course, is much more complex, with fund managers demanding owner capital contributions as high as 25%, preferred 10% returns, and frequently restrictions on commissions, management fees, or related party transactions.

This is only an excerpt of Waking Up With Private Equity

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