Well, if you’re looking for a reason NOT to join the frenzy to invest in Facebook at a $50 billion valuation, here’s one:Goldman Sachs’s own private equity fund, Goldman Sachs Capital Partners, which was offered the deal before you were, said “no thanks,” Andrew Ross Sorkin and Susanne Craig of DealBook report.
Why did Goldman’s fund pass on the deal?
Because GSCP’s boss, Richard Friedman, thought the Facebook stock was too expensive and not suitable for his clients.
Goldman Sachs itself then went ahead and invested $450 million, so it’s not as though Goldman refused to take ANY risk at this price. But still, one sophisticated investor, who works for the broker selling the deal, decided he’d rather let someone else own it.