2 ms·
the article doesn't go into much detail about what the management fees were for or how much of the fee would be profit to the LBO group. its entirely possible t
by benmmurphy 9y ago
the article doesn't go into much detail about what the management fees were for or how much of the fee would be profit to the LBO group. its entirely possible that the LBO groups have a management staff on hand they parachute into their investments and this fee pays their wages and there is nothing much else left over.
- toss1 9y ago>"doesn't go into much detail" -- the article specifically stated that they totaled $200m in fees. The author was specifically trying to find and account for those fees. If there were more, the author would have included it as more fees supported his point better. So, you are claiming that the author somehow didn't find over a billion dollars in fees for them to break even over 15 years? If so, he's a pretty incompetent journalist. And, even if there are a billion in 'hidden' fees, they still lost money. For them to have made even a modest 5% interest for 15 years, which is a very modest/baseline profit goal for finance pros, you'd need to find almost $2billion in missing fees. So, where's the money?