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> Private Equity really is a pox on society. Every single non-public business is "Private Equity". How is every single small business in the entire world "a po

by ars 2y ago

> Private Equity really is a pox on society. Every single non-public business is "Private Equity". How is every single small business in the entire world "a pox on society"? Perhaps you mean "short term thinking" is a pox on society? Or in, like in this case, a duopoly is the issue? If there were 10 such companies a reputation for slow repair would drive people to other suppliers and things would rapidly get better.

eesmith 2y ago
https://en.wikipedia.org/wiki/Private_equity https://en.wikipedia.org/wiki/Private_equity "In the field of finance, private equity (PE) is capital stock in a private company that does not offer stock to the general public. Private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms rather than the companies that they invest in."
hx8 2y ago
PE is specifically referring to companies not listed on stock exchanges that take money from investors. I agree that we do not want to throw the baby out with the bathwater here, but there is probably merit to limiting the activity of PE funds with lots of investors or lots of money. PE often used as a scheme of raising money and conducting business in a way to avoid the scrutiny of a publicly traded company.
7thaccount 2y ago
I'm referring to the large investor firms that go around buying out companies not listed on the stock exchange to capture entire markets, milk it for all it's worth, and then dump the shriveled corpse. This is very rarely good for the end customers or the employees who get outsourced. The owner gets millions though and it allows the PE firm to sell an asset class to investors. On the one hand, I don't think it's right to restrict the rights of the business owner. If they have a company with $20M in revenue and PE offers $60M to buy them out...fair game right? On the other hand, it takes perfectly profitable companies providing value, extracts that wealth from happy consumers of the product to people already wealthy and then leaves the consumer with a crappy, expensive, and barely supported product. If this happens just a few times...it sucks, but no big deal. Once it starts happening all over America, then we start running into systemic problems like not being fleeced every time you want to go to a concert. It's not like a competing firm can just pop up either in a lot of cases as there are huge barriers to entry. There is no recourse other than not ever seeing your favorite artist again.

by ars 2y ago

eesmith 2y ago

https://en.wikipedia.org/wiki/Private_equity https://en.wikipedia.org/wiki/Private_equity "In the field of finance, private equity (PE) is capital stock in a private company that does not offer stock to the general public. Private equity is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms rather than the companies that they invest in."

hx8 2y ago

PE is specifically referring to companies not listed on stock exchanges that take money from investors. I agree that we do not want to throw the baby out with the bathwater here, but there is probably merit to limiting the activity of PE funds with lots of investors or lots of money. PE often used as a scheme of raising money and conducting business in a way to avoid the scrutiny of a publicly traded company.

7thaccount 2y ago

I'm referring to the large investor firms that go around buying out companies not listed on the stock exchange to capture entire markets, milk it for all it's worth, and then dump the shriveled corpse. This is very rarely good for the end customers or the employees who get outsourced. The owner gets millions though and it allows the PE firm to sell an asset class to investors. On the one hand, I don't think it's right to restrict the rights of the business owner. If they have a company with $20M in revenue and PE offers $60M to buy them out...fair game right? On the other hand, it takes perfectly profitable companies providing value, extracts that wealth from happy consumers of the product to people already wealthy and then leaves the consumer with a crappy, expensive, and barely supported product. If this happens just a few times...it sucks, but no big deal. Once it starts happening all over America, then we start running into systemic problems like not being fleeced every time you want to go to a concert. It's not like a competing firm can just pop up either in a lot of cases as there are huge barriers to entry. There is no recourse other than not ever seeing your favorite artist again.