Statistically, it is best to back a manager who has been divorced, says Jon Moulton of Alchemy Partners. Speaking at the Real Deals/Directorbank "Buying into buyouts" conference, he entertained an audience of buyout/buyin candidates with his frank assessment.
"A CEO with one divorce is a better manager than one who has not been divorced. It is a statistically significant difference," he said.
However, a CEO with two divorces under his or her belt is "dire." Moulton reported a "60 per cent loss rate" from this category.
And, as for those with three divorces, he had experienced a "100 per cent loss of capital."
As an investor, his top two questions for any prospective buyout leader ought to be: "how much money are you looking for?" and "how many divorces have you had?"
On a related note, Moulton also reckons that, on balance, it’s better to back a manager who has had an office affair. (For male managers, the targets tend to be the HR director or the "girl in accounts payable.")
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