Private equity and VC investors score with porn
AdultVest is a private equity venture that we covered on its launch earlier this year. The company concentrates exclusively on adult industry investments, mergers and acquisitions. So far, its initial numbers are pretty stellar.
It claims to have some $7.9 billion in "available capital" to invest in adult themed businesses, and $286 million of that was raised "within the last 7 days." It also claims to have 3,809 registered investors, with 53 of those signing up in the last week. (This data is from the group's homepage.)
The big news is that AdultVest was just selected by Alternative Investment News as one of four funds nominated for the "Hedge Fund Launch of the Year" award. And last month, the company announced it was acquiring iPorn.com.
Reading through the earnings release that Rick's Cabaret International Inc. (NASDAQ: RICK) produced earlier today, you might be tempted to conclude that adult entertainment is immune to a slowing economy. On the other hand, the incredibly poor recent performance by Playboy Enterprises inc. (NYSE: PLA) might make you conclude that the gathering slowdown could hurt this sector.
There are a number of reasons that the investment community is trying to get into and make money from porn. The most obvious one is that you are reading about it right here right now.
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