Problems at Peloton

The Peloton story illustrates the dangers of leveraged dealing in what can be illiquid assets. It’s great when things move your way, but it can be catastrophic when things conspire against you.

Peloton Partners, the fund set up by a group of partners including former Goldman Sachs’ alumni Ron Beller and Geoff Grant, took its name from the French word given to the main bunch of riders in a cycling road race. The peloton, by working together, moves forward faster than any individual rider can – teamwork will always beat individual flair.

When the fund was set up, one of my push-biking muckers pointed out that there are frequently crashes in the peloton, leading to substantial collateral damage.

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