Friday, March 28, 2014
Business development companies (BDCs) publish a list of their investments every quarter. But do you really know what's in your BDC? Probably not. This article from the Financial Times is worth reading (requires free registration if not a FT subscriber).
Wednesday, March 19, 2014
At a conference earlier this week I over heard a real estate sponsor claim with pride - and a strait face - that his REIT had no debt. He then added the caveat that he didn't count the REIT's $40 million line of credit as debt (I'm sure his bankers have the same impression). The sponsor also didn't include the 60%-plus debt on each of the REIT's properties. The sponsor can make this specious boast because the REIT owns the properties through what is known as special purpose entities (SPEs), stand-alone companies (usually limited liabilities companies) whose sole purpose is to own one asset. The catch is that the SPE's sole owner is the REIT. So the while the sponsor's pronouncement is technically correct, it is also complete BS.
Friday, March 07, 2014
This InvestmentNews story is a big fat nothing. When I read the headline I thought ARC and KBS were in a new fight, but it turns out its an old (2009) issue. I am shocked to learn that wholesalers would take their contact lists with them when changing jobs. What has this world come to?