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For A 10m Loan Its Not Worth Sending Someone To A Meeting

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by Felix Salmon
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Apr 20 2007 12:00am EDT

"For a $10m Loan, it's not Worth Sending Someone to a Meeting"

Quote of the day comes from billionaire investor Wilbur Ross:

We syndicated a loan for one of our companies recently, and I noticed that one of the hedge funds had bought it, bought a small piece, a $10m piece, but never came to any of the due diligence meetings. So I called the fellow who runs the hedge fund, because I know him, and said: thank you for participating, but I was surprised nobody came for diligence. He said: for a $10m loan, it is not worth sending someone to a meeting.

The really shocking thing here is not that the hedge fund in question thinks so little about a $10 million investment. Rather, it's that they passed up the opportunity to get some inside information on Ross's company!

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