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  • Tag: Private Equity

    Laracina Energy next oil sands giant?

    Another one of our private holdings, Laracina Energy Ltd., was profiled in the Globe and Mail yesterday as being “the next big oil sands player”.

    We won’t count our profits just yet, but it’s been a strong performer to date and we’re excited about the prospects going forward.

    The opportunity was introduced to us through our contacts in Calgary and it’s a core holding in our Canadian Equity Fund. Like the CPPIB, we invested at a price of $30 per share in 2010.

    Here’s a link to the article, Laracina valuation approaches $3 billion

    Investing like it’s 1999

    As a follow up to my earlier blog post, Are private companies worth more than public companies?, The New York Times Dealbook provides a worthwhile visualization and commentary on the growing valuation of some of today’s private high technology stocks vs. the public companies at the cusp of the 2000 meltdown. As cited in the article, Investing Like It’s 1999, five private companies today are worth the same $71 billion as 24 public companies in 1999.

    Are Private Companies worth more than Public Companies? – Sometimes

    As a young investment banker, I was taught early on in my career that private companies are worth less than similarly sized, similarly profitable and similarly growing public companies. This was largely due to the lack of liquidity associated with private companies. Now, one of my bedrock beliefs is being challenged.

    I’m sure you have read of the recent financing rounds done by several high profile private companies, including Facebook and Twitter.

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