"The old funds the new," he says.
Outside the home recently, a billboard used for an old fund-raiser rested against the wall.
A new study has found a different problem in the way Morningstar compares young and old funds.
Banks, for example, regularly dump old funds for new ones once they have mined the relationships for banking deals.
Meanwhile, if the deal collapses, rue21's share price is likely to plummet, leaving the old funds with a loss of possibly more than $100 million.
"At that point, if you've got a big old fund of funds, and you've got another $300 million to invest, you've got a big problem.
The strategy has been replicated across the country, but has often struggled to sustain itself as police chiefs and mayors change – or as old funding sources dry up.
Weighing all these factors, the question is, when will Apax begin to feel nervous enough to try to get out of the deal, leaving its old funds with a big loss at the benefit of its new funds?
Under this option, Apax would rather close with some increased risk of loss then have its new funds eat the termination fee and its old funds take a big loss.
Essentially, if the deal goes through at the current $42-a-share 42-a-share 42-a-shareold funds will post a gain buyoute new Apriceunds will stApaxwell underwater on their investment.
