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Regulatory and tax changes in the 1980s created private equity. Declining interest rates juiced it, as has computerization, but the fundamental change was Reag
by pirate787 4y ago
Regulatory and tax changes in the 1980s created private equity. Declining interest rates juiced it, as has computerization, but the fundamental change was Reagan's policy of financial deregulation and reducing capital gains and marginal rates so that entrepreneurs had more money to invest.
- missedthecue 4y agoWhat specific regulatory changes occurred in the 1980s that created PE? KKR, a pioneer of the industry, was started in the '70s and they did a landmark $380 million deal in 1979, which is billions in today's money. The first LBO was of Orkin Pest Control in 1964 and there were about a half dozen other LBOs in the 60's.