leveredequity

4 ms·

1.
by leveredequity 3y ago
This is so disingenuous I don’t even know where to start.
2.
by leveredequity 6y ago
How does income tax disincentivize work? You still generate positive income with a tax.
3.
by leveredequity 7y ago
I don't believe the 1.3% is correct, as I think it's closer to 20-25%. Data I have seen supports that they put up $1.3bn of equity in the acquisition, in addition to ~$5Bn of debt (at ~7x leverage I think? -- that's more of t
4.
by leveredequity 7y ago
Totally agree, I thought we were arguing to bail out employees here. That's what I'm aware of based on what I've seen going on in the industry
5.
by leveredequity 7y ago
That is simply not true. Management fees are such a small percentage of contributed capital. And, typically doesn't count towards your returns calculation.
6.
by leveredequity 7y ago
I work at a PE firm. There are multiple strategies employed, but the name of the game is not to lose money. Disagree with the term "value creation" - fine - but my point is there is zero incentive to lose money. Otherwise, they wo
7.
by leveredequity 7y ago
It's disingenuous to say PE doesn't care. They have every incentive to preserve and generate equity value. That is literally their business. However, the issue is employees are also hurt, not just equity and debt holders. Edit: I
8.
by leveredequity 7y ago
My point is no need to target preservation of equity value but instead ensure those facing job loss are supported. However, the current legislation doesn't allow portfolio companies to take bailout capital as a result of restrictions b
9.
by leveredequity 7y ago
It's not about bailing out the investments, but about preserving jobs. Fine, attach restrictions for taking bailout capital, but that should be the purpose.