3 ms·
Private equity's playbook is very, very transparent. They will take massive loans and use the money to try to create fake growth, maybe by buying a high growth
by pfarnsworth 7y ago
Private equity's playbook is very, very transparent. They will take massive loans and use the money to try to create fake growth, maybe by buying a high growth unicorn. Then they will turn around and IPO it and sell it to retail suckers like mutual funds, and make a ton of money. They will get out, and then the company will collapse in a few years, taking down all the retail suckers who bought into it.
- jonhendry18 7y agoOr they'll make the company they bought take on unmanageable amounts of debt. The funds thus made available to the acquired company will be kicked out the back door to KKR as dividends.