"The private equity business is more competitive because there is more money that has flowed into it."

bantam inc jack duval mfo multi family office new york manhattan - private equity AUM chart

Growth of global private equity dry powder. Source: Bain & Co.

This is the fourth interview in our Entrepreneur and Family-Owned Business Interview Series. These interviews are designed to help entrepreneurs and family business owners think through the benefits, implications, and consequences of taking outside investment. As part of the project, I am interviewing private equity fund managers, middle-market investment bankers, attorneys,

accountants, and consultants that advise privately held firms. This interview is with Bob Horne, a partner at ZS Fund L.P., a private equity firm located in Manhattan. Bob has decades of experience working in private equity and before that in mergers and acquisitions at Salomon Brothers. Some of the…

Global central bank intervention has altered the very fabric of the economic universe, time.

bantam inc. jack duval mfo multi-family office manhattan new york - space bending image

Light bending around the sun is similar to the distortion caused by artificially low interest rates.

Like the Spacing Guild, central bankers the world over have bent the financial universe to their will.  The results have been spectacular.  If you were wealthy in 2009, you are almost certainly much more so at the end of 2019. In this unprecedented decent into interest rate suppression, asset purchases, and

the resulting stock market volatility suppression, there has been an unintended consequence, it has caused the periodicity of the economic cycle to become stretched.  In other words, global central bank intervention has altered the very fabric of the economic universe, time. And we are nowhere near touching the bottom…

Western governments are about to steal the central planning playbook from China. The plan is infrastructure spending.

bantam inc jack duval multi-family office manhattan new york - chinese military parade

Global politicians marching in formation.

Much ink has been spilled bemoaning how Europe and the U.S. will become "Japanified", but pundits have missed the geographic mark.  The U.S. will become China, with Japanese characteristics. Global leaders must marvel at the high growth rates that China has been able to sustain for the past 20 years.  And although

this growth is slowing, it is still two to six times that of other similar sized economies. The economics profession has been mostly silent on this phenomenon as it puts the lie to every theory the mainstream discipline stands upon.  In short, a centrally-planned economy that crushes all…

The Chinese Communist Party starved 30 to 55 million of its own people in the "Great Leap Forward", and didn’t even bat an eye.

bantam inc jack duval multi-family office new york manhattan - Xi Jinping and Donald Trump eating

Eating America's lunch for 30 years.

While the Russians undoubtedly helped put Donald Trump into power, he could very easily be taken out of power by the Chinese. And it won't involve bot farms trolling on Twitter. This is not a tinfoil hat theory involving the tri-lateral commission, the Illuminati, QAnon, or the deep state.  It only

involves rational self-interest by state actors doing things they have already done before. Let us assume China views Trump as a threat.  A fair assumption since he has put more tariffs on them than any president before and has made their business model of forced technology transfer, IP theft,…

Negative yielding sovereign bonds are a form of capital confiscation and can be thought of as a stealth nationalization of the banks.

bantam inc jack duval multi-family office manhattan new york - Yield and Rates Table 2

Negative rates and negative yield curves made clear.

“The percentage you’re paying is too high priced. While you’re living beyond all your means/And the man in the suit has just bought a new car. From the profit he's made on your dreams." from “The Low Spark of High Heeled Boys”, by Traffic The world is now suffocating under a blanket of

negative yielding sovereign debt.  This phenomenon is perplexing to economists and laymen alike.  In this post, I’ll try to clarify how negative interest rates work and their implications. Chart 1:  Global Sovereign Debt Yields[1] How Negative Interest Rates Work Negative interest rates can be thought of as…