Private Equity
- Thread starter CFPCPADawg
- Start date
8 bilsky, Congrats to the dude who started that biz. These funds give guys like that another option besides the wringer of going public to cash in on their life’s work.
Definitely possible quality suffers as Bx looks to take it more global. That said I’m sure they will recognize that brand value has a lot to do with the quality of the meats JM uses. I wouldn’t expect them to cheap it on that.
if they do it opens the door for another great company to take market share, and we can grab sandwiches there. The invisible hand of capitalism works. Whether this specific deal work or not these funds provide so much liquidity to the market, it really does enhance the sink or swim dynamic of capitalism.
Would be a shame if a Jersey Italian or BLT add avocado takes a dive quality wise. Shit is good.
And let’s take homeowners out. Auto accident. Attorneys are sending folks to doctors they’ve never been to. 4 trips to the chiropractor ought to drive up costs and keep the settlement talks to a 5th, 6th round. Disgusting.
The entire state of Florida is taking it on the chin homeowners wise. And insurers are pulling out. No profit to be made. Cali’s in about the same predicament. Sure, these large insurers aren’t saints and have reserves, but the legal abuse has to be curbed. Folks are working on it but so far behind the contributory assets the legal community maintains.
Like PE, there are good actors but a s-load of bad actors.
I know and most of the sheep don’t understand the economics enough to vote for it.
I think Josh Brooks should flip the script and stage a hostile takeover of Blackstone. Then make them play football.
Wall Street Loots Federal Loans Meant for Affordable Housing
Private equity firms are exploiting loopholes to tap billions in publicly supported funds from the Federal Home Loan Bank System, a little-known relic of the Great Depression originally established to encourage affordable mortgage lending.
jacobin.com
Remembered this thread from a few months back. Saw this article and wanted to throw it in here for those of you ITT that don’t think PE consists of a bunch of soulless ghouls & bad actors.
Wall Street Loots Federal Loans Meant for Affordable Housing
Private equity firms are exploiting loopholes to tap billions in publicly supported funds from the Federal Home Loan Bank System, a little-known relic of the Great Depression originally established to encourage affordable mortgage lending.
Remembered this thread from a few months back. Saw this article and wanted to throw it in here for those of you ITT that don’t think PE consists of a bunch of soulless ghouls & bad actors.
I guess that settles it then.
Also, activist investors have basically ruined Southwest Airlines in less than six months. Bags will NOT fly free moving forward unless you have their highest tier of status. In addition to that, an airline that NEVER had a layoff in its entire history laid off 15% of its staff last month in the name of, you guessed it - margins.
Cabelas, which I used to love and buy a ton of stuff from was forced into a merger with Bass Pro. I miss that phone book sized catalog. I used to get the hard bound deluxe catalog because I bought so much stuff. When we went elk hunting, between the four of us, I’d estimate $10k per man from Cabelas. Their stores say Cabelas, but it isn’t true.
You’ll rue the day when UGA will be forced to merge with Clemson or tech.
it’s nice that they agreed to just give you money with no strings attached.
The strings attached are negotiated, and generally as an owner / founder, you have to decide whether you want to "cash out", which generally means selling 51% or more of the Company (i.e. cede control, and you are now effectively an employee, but presumably a wealthy one), or put up a non-controlling stake, retaining control but utilizing their capital for growth at a cost.....also tapping into their relationships and access to other capital. In either case, the decisions made are made by the existing owners or sellers of the Company. I would argue a company that is privately capitalized with an element of PE money has much more flexibility than a public company, beholden to Wall Street every quarter.
The "predatory" side of PE is a very small part of it.
Yes I do - but considering they publicly stated that they aren’t going away from the model and now they are can you really trust anything else they say as a company? Their own research showed it would cost more in lost fares and loyalty if they disposed of the free bag policy but they’re doing it anyways.
What their PE investors are doing is “How to Ruin a Successful Business 101” - drive away the loyal customer base in exchange for short term profit margins.
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