More Details Emerge On Terralliance

and PEHUB has the details. PEHUB mostly focuses on how investors could write such big checks without doing diligence on these deals.

This deal is an example of how some hedge funds aggressively strayed into asset classes they don’t really understand in search for alpha and got burnt.

The debt funding came from Passport Capital which is one of these SF based hedge funds that is led by John Burbank, who is characterized as an oddball. Check out the picture of him in this Forbes article.

I suppose I understand the thinking here– if Kleiner plowed in a lot of money, it has to be a good deal so I can save myself the time, resources, and effort of doing extensive diligence.