In his new book, Bad company: Private equity and the death of the American dreamReporter and wired alum Megan Greenwell Chronicles are the harmful effects of one of the most powerful but poorly informed forces in modern American capitalism. Flush with cash, mostly unregulated no margulations, and incessant focus on income, Private Equity Firms The US economy is silent, taking many industrial chunks from caring health care in constant financial breakdown.
Twelve million people in the US today work for private equity-owned companies, Greenwell wrote, or about 8 percent of the total population population. His book points to the stories of these four individuals, including a toy “R Supervisor who has lost the best jobs he has been able to catch on his or her hassle of financial engineering and structure changes to all except for the above.
In a review of Bad company For Bloomberg, a long-term private equity executive accused Greenwell in search of broken stories inevitable “sad endings. “But Greenwell’s chosen characters don’t just sit down and look while private equity breaks their communities.
Greenwell spoke in the wired late last month about what was private justification and not, how it changed different industries, and what workers did to regain their power.
This interview is edited for clarity and length.
Wired: What’s private fairness? How is the business model, as, capital capital?
Megan Greenwell: People confuse private equity and customs all the time, but it is reasonable reasonable that normal people do not understand the difference. Mainly, the easiest way to explain the difference is that capital capital companies invest in cash, usually at the start. They usually have the company stake and look forward to some kind of return on time. They usually play a higher game than private justification.
But the way practices of private justice, especially with the shed buyers, which is what I focus on the book, are these companies directly. In capital venture, you put your money, you trust it in a CEO, and may have a board board. But in the Menorala Purchase Model, the private equity firm is the owner of the company’s owner and control company in portfolio.
How are private equity firms explaining success? What kinds of companies or businesses attract them?
In venture capital, VCS checks when making an agreement based solely on if they think the company will be successful. They are looking for unicorns. Does this company be the next Uber? Private equity looks to make money to companies in ways that do not need the money to find the money. That’s like the biggest thing.
So a gamble is less.
It is very difficult for private equity firms to lose money on deals. They get a 2 percent management fee, even if they run into the land company. They also lost all these tricks, such as the company’s real estate sales and then ordered the company’s rental to the same land using it. If private equity firms take loans to buy companies, debt from loans are assigned not to private equity firm but in portfolio company.
