The scale of the document dump coming out of Facebook is such that it seems a little ungenerous to describe it as the action of a whistle-blower, given that the individual concerned has gone in with the equivalent of the full brass section of a decent-sized marching band. In a calamitous moment for what’s left of Facebook’s reputation, internal documents have been handed to The Wall Street Journal (WSJ), the US Congress and the Securities & Exchange Commission (SEC), and the WSJ’s series on "the Facebook Files" makes for damning reading.
The leaker’s motivation may not be entirely altruistic, given that the SEC pays whistle-blowers between 10% and 30% of any fines awarded as a result of their information, and last October it paid one person a cheeky $114m award, so there may well be a chunky payment in the offing given that Facebook paid a $5bn fine over privacy violations two years ago.
The overall impression is that Facebook is well aware of the damage its apps are doing in undermining democracy, damaging teenage mental health and spreading antivax propaganda, but has very little inclination or ability to do anything to sort them out.
Evidence has emerged of a "white list" of about 6-million prominent figures who are not subjected to any content moderation.
But it is probably the internal Instagram research on the damage the app does to teen girls’ mental health that will prove the most controversial, particularly as it seems to be in direct contradiction to public positions taken by Mark Zuckerberg and Instagram CEO Adam Mosseri.
Universal Partners Ltd: Universally good
The listed company structure has a bit of a mixed reputation as a private equity vehicle, with most of the more prominent funds preferring to practise their dark arts away from public scrutiny and six-monthly reporting.
One of the benefits of the structure is that it can offer a bit of private equity exposure to smaller punters at levels that wouldn’t get you past the doorman at a conventional fund, and Universal Partners offers it in Europe, with particular focus on the UK.
While the valuation of unlisted companies can be a matter for interpretation, nobody can argue with the proceeds of a realisation, and the consideration received for Universal’s first exit looks promising.
The company first invested in electric motor manufacturer YASA in August 2017, and its sale to Mercedes-Benz AG hauled in £42.8m, representing three times money invested, and an internal rate of return after transaction fees and carried interest charges of 27.6%. Mercedes’s decision to buy its supplier is a ringing endorsement of its technology, and it’s a tidy exit for Universal.
The rest of its portfolio ranges across sectors, including gems like Propelair, the manufacturer of the world’s least thirsty water-flush toilet. Dentex Healthcare Group is rolling up dental practices at speed, having acquired a further 24 practices since it recommenced acquisitions in November. It has heads of terms with another 16, and Universal says it is delivering consistent growth in profitability.
Further investments are in financial services, payroll services and technology skills, and there’s more to come.
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