送礼

From iPods to offspring, favour is a fact of economic life

In London the technology-focused side of a smallish private equity fund is run by a guy we shall call Mike. Mike’s been around a long time. His real name, and the fund he works for, are recognisable but not world-famous. And yet, he has a big advantage.

Back in 2001, when the very first iPods hit the shelves, Mike did a smart and generous thing. These devices were only available in the US and even there they were not easy to come by. Mike used his connections to buy a box load and promptly distributed these new toys among all the senior tech bankers and deal brokers in London. People remember things like that. A senior tech banker in Asia complains about the treatment he gets from all the big, global names in private equity – they sometimes cancel meetings at the last minute, yawn or just walk out in the middle of presentations. So when it comes to making initial calls to investors about opportunities, there is one name always near the top of the list.

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