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Thursday, May 23, 2013

Leon Black, Value Investor, Can't Find Any Values

Leon Black is a value investor. He can't find any value:

We think it’s a fabulous environment to be selling into. We’re selling everything that’s not nailed down in our portfolio. It’s almost Biblical—you know, there’s a time to reap; there’s a time to sow—and right now we are harvesting. There’s even an opportunity for strategic sales. We’ve had 13 billion dollars’ [worth] of realizations over the last 15 months, which is more than we’ve ever done over any period like this. We are a value investor. We like to buy good companies at low prices. Our view right now is the market is pricey. The average transaction in the US is being done at a 9 multiple of EBITDA. Inexplicably, in Europe it’s even higher: 9½ to 10. When you pay that type of multiple, you’re pricing to perfection.