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XOJet and the financial institutions

flyzimex

Well-known member
Joined
Jul 4, 2006
Posts
197
Total Time
6400
First of all this is a honest question and not a try to bash XO at all, so I hope for some serious replies.

With the turmoil in the financial world taking another turn for the worse how, if at all, with this affect XOJet? We all know that they last year were backed by Lehman among others, and as I understand the financial institutions are/were big clients at XO.

I'm in the early stages of learning about the markets so not sure how it all works. The money that Lehman put into XO was that an all at once injection or something happening over time? If over time, obviously that is money that will never reach XO.

By the way, I understand XO is not the only affected company but they do seem to have a bigger exposure to this than the others.

Thanks for educational replies.

FZ
 

NJAowner

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Joined
May 22, 2003
Posts
748
Total Time
2000+
XO and Lehman

I believe that the investmnet made in XO was made from a private equity fund run by a department at Lehman. The fund raises money from high net worth individuals and families and institutions. Some of the seed money was provided by Lehman. The unbit which ran these funds (Bear Staerns had one too) is being shopped around and will probbaly either be a stand alone boutique firm or be bought by another investment bank and combioned with its private equity business. I would not expect this to have any cuureent effect on XO, unless as part of the deal the Lehman partnership was committed to provide additional investment in the future. Even if that is the case, usually the other investors in the partnership will have to cough up the $$ if old Lehman can not.

I have no specific knowledge of the terms of the Lehman/XO deal but am familiar with these investments in general. Please feel free to PM me if anyone has some other questions.

Fly safe.
 
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