Arcapita Reviews

Pros

Allowed to be very entreprenurial. Generally get to work with really nice people. Culturally, it is a nice place to work. Shame about the ability of senior management (who are nice but incompetent)

Cons

Senior management fail to understand how to run a private equity business. Capital allocation decisions are made on the basis of popularity. The investment committee is comprised of the heads of the deal teams, who's deals are up for approval. There is no chief investment officer or chief risk officer of the bank. The end result is that Arcapita has lost close to US$800 million of its clients money across a portfolio of deals with a book value of US$3 billion. NAV is substantially less.

Advice to Senior Management

US$1.1 billion of debt due in April 2012. Total debt of US$2.5 billion. NAV of US$2 billion. Cash revenues are non-existant and are predicated on synidacating new deals (there is no money to do this). Do the math. Company needs to be completely restructured and rebranded with new senior management.

Pros

Entrepreneurial and friendly work environment?

Cons

Grossly Incompetent senior management. Doesn't have a clue about anything other than accumulating air miles through senseless travel for no reason.

Advice to Senior Management

The business model does not work anymore.