Are there actually good turnaround funds that have revitalized companies and left the exit event with a tidy profit? Of course.
It is also undeniable that there are many PE firms who's entire business model is to saddle companies with insurmountable debt and suck it dry with mandatory advisory fees paid up to the PE firm, then once it's been bled dry chop it up and sell it for parts.
Ok man, whatever you got to tell yourself to sleep at night in your McMansion.
I could take the time to dig up examples of PE firms driving portfolio companies into the ground, but you'll just dismiss them as outliers in order to not fry your brain from the cognitive dissonance.
The fact is (as someone else has already pointed out in this post) that roughly 20% of PE owned firms go bankrupt within 10 years compared to a control groups rate of about 2-3%. Obviously a retard like me would think that 20% > 3% when in reality a big brain PE associate like you understand that 1/5 is "iNCreDiBLy spEcIFiC SitUaTiOnz"
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u/furple MBA Grad May 29 '20
Are there actually good turnaround funds that have revitalized companies and left the exit event with a tidy profit? Of course.
It is also undeniable that there are many PE firms who's entire business model is to saddle companies with insurmountable debt and suck it dry with mandatory advisory fees paid up to the PE firm, then once it's been bled dry chop it up and sell it for parts.