Tuesday, Mar 24, 2009

Making Up Your Own Reality - Private Equity Style

Reuters: Foxtons trading profitably, BC Partners says

Foxtons supposedly still profitable on tiny volumes whilst carrying £260m of debt. I really don't understand how that's possible. Of course, private equity can say what they like - it's private and not listed.
"We do see a level of activity, particularly in prime London real estate -- we don't see prices falling there for example ... which is extraordinary,"
Sadly this VI has it wrong. He shouldn't care about trying to hold up prices, he should be trying to hold up volumes which will only happen if prices do fall

Posted by ontheotherhand @ 05:16 PM (554 views) Add Comment

3 Comments

1. dohousescrashinthewoods said...

No change in the business model then - lie, cheat and steal.

Tuesday, March 24, 2009 05:23PM Report Comment
 

2. jonb said...

Playing devil's advocate here - they do have a lettings business. That is probably pretty busy at the moment - landlord supply up 80%, tenant demand up about 66%. Maybe they manage to make the same sort of money from renting places as they would from selling it? I don't know.

Tuesday, March 24, 2009 07:39PM Report Comment
 

3. Jackassjoiner said...

they also had the debt "restructured" by nm rothschild bank, those guys are pretty good with money, was gonna ask them t restructure mine

Tuesday, March 24, 2009 08:09PM Report Comment
 

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