Case | HBS Case Collection | January 2004 (Revised May 2004)

Montagu Private Equity (A)

by G. Felda Hardymon, Josh Lerner and Ann Leamon

Abstract

Describes the dilemma facing Chris Masterson, the head of HSBC's private equity division, in negotiating this team's buyout of its organization from HSBC, its corporate parent since 1992. Discusses the pros and cons of being a captive fund and the delicate balance among many interests--limited partners, team members, the parent, and the investee companies--that must be maintained.

Keywords: Private Equity; Balance and Stability; Asset Pricing;

Citation:

Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Montagu Private Equity (A)." Harvard Business School Case 804-051, January 2004. (Revised May 2004.)