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>>>Higher alignment is called "Private Equity" and it already exists as a model. That is NOT what PE is at all! PE is about buying WHOLE companies that have es
by jonwachob91 9y ago
>>>Higher alignment is called "Private Equity" and it already exists as a model.
That is NOT what PE is at all! PE is about buying WHOLE companies that have established businesses but are struggling. PE does NOT invest in growth companies that are new to the market / not yet proven, nor do they take small percentage ownership.
- vonmoltke 9y ago"Private equity" is any investment position, including VC, in a private company. What you are describing is specifically distressed investments. There are plenty of firms who make growth or mezzanine investments in established companies that need a quick infusion of capital.
- mbesto 9y ago> that have established businesses but are struggling. > PE does NOT invest in growth companies I've advised over 50 transaction on behalf of Private Equity firms. These are not true statements.