Quote:
Originally posted by taxwonk
How much would you pay to buy in to Blackstone?
I told you, the math is out of my range of ability. The concept is not. If you mean to suggest that the carry is worth zero because thee limiteds haven't paid in their capital yet, that's absurd. If you are sugggesting that a valuation expert couldn't look a the historic returns, the implied values from the Blacksotone IPO and the other IPOs being bandied about, and the size of the fund and come up with a value, you're either being disingenous or naive.
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You're not answering my question.
As to yours, I view the math as about as meaningful as the folks who calculate the odds of who will win the next Presidential election.
All I am suggesting is that when someone starts a company, any company, and puts nominal cash in, even no cash, and then builds up a business over a long period of time, that business is a capital asset. Whether they take a bank loan or do an equity financing to get more capital doesn't change the fact that the business is a capital asset as a whole. (note that this is different than the points assuming we have a partnership with flow-through taxation - this argument is on your turf and looking at the partnership as an entity).
The fact that someone has built up many companies before and are quite good at it, doesn't change that fact.
