Private Equity is an arbitrage on bloated companies. Typical cycle is innovative startup -> efficient corporation -> beauracratic corporation. PE firms buy the companies late in the cycle and then cut the fat. Commonly also seen in activist investors. This is a needed function that will never go away.
Private Equity is an arbitrage on bloated companies. Typical cycle is innovative startup -> efficient corporation -> beauracratic corporation. PE firms buy the companies late in the cycle and then cut the fat. Commonly also seen in activist investors. This is a needed function that will never go away.