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Not really. PE takes good businesses, strips the assets, loads up debt and issues a dividend. Then shockingly files for bankruptcy.

• missedthecue 6y ago
  This is popular to say, but doesn't hold up to reality. An analysis of "17,171 worldwide leveraged buyout transactions that include every transaction with a financial sponsor in the CapitalIQ database announced over a 40 year period" found bankruptcy rates around 6% [1]. This isn't notably out of the ordinary. Large deals get press. They also have a habit of involving over-extension. As a result, the average private equity story is about things going spectacularly wrong at scale. [1] https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.23.1.121 https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.23.1.121 Table 2
  • airstrike 6y ago
    I'd like to run the numbers on just the Bain Capital retail acquisitions...
  • deleted 6y ago
    [deleted]