bloggingbuyouts

Investment conferences are usually pretty dull stuff. A dozen or so execs from small firms get 20 minutes each to stand up at the podium, run through a PowerPoint presentation and try to convince investors to throw some cash their way. Many investment banks hold them, often specializing in a particular sector.

Now the porn industry is getting what may be its first investment conference. Investment firm AdultVest has announced that it will schedule a series of ongoing meetings to bring potential investors together with business opportunities in the adult entertainment sector. This represents what may be the first go-to gathering for investors interested in adult-oriented businesses. If you're interested, here's your opportunity to be a porn mogul.

These two-day events will no doubt be a little spicier than the usual investment conference fare -- and in a sign of how popular AdultVest expects them to be, the firm will hold them every month. The press release also promises that, as the popularity of these meetings grows, they will be held in new venues like, "hotel meeting rooms, private estates, and private members clubs."

While there's no question that sex sells, venture capitalists and other investors traditionally haven't been buying. But according to a piece in Thursday's New York Times, that's changing. At last, purveyors of perversion are attracting investment dollars for companies selling sex toys, smut, and hook-up services. According to the piece:

Jimmyjane, a San Francisco company that sells sex-related consumer products including high-end vibrators (a gold-plated one sells for $250), has six venture capitalists among its investors. The company's chief executive said he was close to completing a $3 million to $5 million round of financing with one or more funds - not merely individual venture capitalists but marquee funds.

But there's also a downside:

...Investors are dubious that these companies can turn a sufficient profit to justify the risk. Pointedly, investors may find it tough to take sex-related companies public, or find big companies to acquire them, limiting their profit-making exit strategies. And the universities and endowments that invest in private equity funds and venture capitalists are not likely to approve deals they see as pornographic...

But will that change too, as societal taboos are breaking down? If VCs are finally getting interested, will private equity show up at some point? It seems likely.

If they do, Playboy (NYSE: PLA) could be in play, but only if Hef wants it to be: He owns more than 25% of the company's stock. The company has been struggling for years, but its market cap seems paltry, given that it's among the most recognized brands in the world.

A lesser-known but better performing play is New Frontier Media (NASDAQ: NOOF), a leading supplier of pay-per-view porn.

While pension funds and endowments are understandably uncomfortable with the porn proposition, I wonder how much the idea bothers investors. Would you invest in pornography stocks if you thought they presented a strong opportunity for capital appreciation?