4 ms·
> (Why do private equity firms want to be in this business? Because the 59% that don't fail often generate very good returns.) The way they limit their own exp
by bubblewand 8mo ago
> (Why do private equity firms want to be in this business? Because the 59% that don't fail often generate very good returns.)
The way they limit their own exposure to risk seems to increase the odds of the targeted business completely failing, though. I think that's the part people have a problem with.
- SpicyLemonZest 8mo agoAgreed. I'm sure there's edge cases I don't know about, but in general I think it would be better to simply not allow leveraged buyouts and let businesses that would fail without the buyout fail.