Imagine you are considering investing in IPOs, and are specifically interested in private equity-backed IPOs. However, you recall the Dick Smith IPO. Here, Anchorage Capital had invested in electronics retailer Dick Smith. However, Dick Smith collapsed soon after the IPO. Before the IPO, it emerged that Dick Smith had written down significant inventory holdings, thereby reducing their recorded expenses and making profitability appear stronger. This is one of the reasons some have called it the "Greatest Private Equity Heist of All Time". Your friend says that "The Dick Smith IPO shows you should never buy shares in a VC / PE backed IPO". Critically evaluate this statement to determine whether, why, and/or under what circumstances you believe your friend to be correct or incorrect.