Private equity pros have lamented their lack of foresight that would have had them buying into Facebook. Now, they’re prepping all kinds of late-stage venture plays, taking them into a no-debt territory that’s unfamiliar. While some of these deals, like Carlyle’s Beats play, are generating impressive returns, not every hedge fund and LBO shop that strikes a big deal with a hot startup is necessarily in line for IRR. There have been some big private transactions that left big backers stinging after promising prospects reversed themselves. With Jawbone, Airbnb and Uber, to name a few, packing on the cash, this trend seems likely to continue.
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