Wilbur Ross, talking
to the FT in April:
Anecdotally we syndicated a loan for one of our companies recently, and I
noticed that one of the hedge funds had bought it, bought a small piece, a
$10 million piece, but never came to any of the due diligence meetings. So
I called the fellow who runs the hedge fund, because I know him, and said:
thank you for participating, but I was surprised nobody came for diligence.
He said: for a $10m loan, it is not worth sending someone to a meeting. Makes
you wonder how many $10m pieces are in that portfolio without any due diligence.
Wilbur Ross, talking
to Reuters in June:
Ross gave an anecdote of one hedge fund who took a $20 million stake in one
of his portfolio companies. “I called him to thank him, but I told him
that nobody from his fund came to due diligence. He said ‘I know that.’
I was surprised, and he said ‘we’re only going to put $20 million
in we didn’t think it was worth sending anyone.’ So it makes me
wonder, how many of these fellows are buying the things without due diligence.”