Why do private equity firms have a worse reputation than VC, Banks, or other investment firms? Is it deserved or unwarranted?
In: Economics
The goal of banks and VCs is to make money by investing money in things they think will grow into something bigger and better
Private equity does the exact opposite. They buy distressed businesses that have valuable assets (property, products, intellectual capital) that are worth more than the business itself. The private equity shop buys the business and sells off everything of value making more money than they paid for the business. Then they fire all the staff in the name of “efficiency” and sell off the shell of the business. Actual real life vampires.
Latest Answers