A height enterprise capital agency had an opportunity to dump a significant stake in FTX days ahead of Sam Bankman-Fried’s crypto empire collapsed — however botched the deal after looking to squeeze more cash out of the patron, The Put up has realized.
San Francisco-based Greenoaks Capital discovered a suitor within the personal markets not up to two weeks in the past who used to be prepared to pay $28 a proportion for the fund’s FTX stake, which used to be valued at kind of $35 million on the time.
The deal had valued FTX at greater than $20 billion, mentioned a supply with shut wisdom of the placement. That would possibly have clinched a tidy benefit for Greenoaks, which used to be amongst a number of enterprise capitalists that invested in FTX when it raised $400 million at an $8 billion valuation in January, in line with printed experiences.
However as a substitute of taking the be offering, Greenoaks, run by way of Neil Mehta — identified for backing South Korea e-retail massive Coupang and stock-trading start-up Robinhood — made up our minds to power the patron into ponying up $34 according to proportion, up from an previous ask of $31 a proportion, the supply mentioned.
The deal ended up falling thru and Greenoaks’ $35 million stake turned into nugatory a couple of days later after Bankman-Fried put his once-high-flying crypto corporate out of business.
Had Greenoaks now not been so grasping, it would have most likely signed the bureaucracy to make the deal binding ahead of FTX filed for chapter, the supply mentioned. The consumer can have challenged the contract in court docket after Bankman-Fried’s downfall, however there would have most certainly been a agreement, the supply speculated.
Greenoaks has $15 billion in belongings beneath control. The 38-year-old Mehta has been vulnerable to naming a few of his price range for Batman characters, equivalent to the fictitious mob boss Carmine Falcone, in line with the Monetary Occasions.
Taking a look forward, Mehta can title any long term fund after a brand new villain — SBF.
Greenoaks didn’t go back calls.
Supply Via https://nypost.com/2022/11/16/top-venture-firm-botched-chance-to-sell-ftx-stake-source/