Trident Capital to invest in public companies
"A mere 12 months ago, the public markets were accepting any business, startups without a hint of revenue got huge market caps, and venture capitalists saw obscenely high rates of return. Those conditions pushed too many companies public too soon. Some of them are real businesses, but now they’re in a pinch: the markets are closed to secondary offerings, and venture capital money is frequently out of reach of later-stage firms.
Trident Capital has its eye on them. The firm will use its new $725 million fund to invest in a number of publicly-traded companies in need of working capital and operating close to the break-even point. According to Trident’s research, 175 recently public companies are trading below their cash value, says managing director of Trident Capital Venetia Kontogouris. "There are a lot of really good valuations — some of them are better than private companies," she says."