“private equity routinely burdens companies with debt, which puts them at more risk of going bankrupt,” Davidoff says.
This makes perfect sense given Governor Romney's background in private equity fund formation.
A private equity fund had bought the land but then ran into financial difficulty, and then Goldman swooped in.
And he basically didn't know the difference between a hedge fund and a private equity fund.
But the high-end world of private equity and hedge funds is a cynical one.
Flowers created his first private equity fund in 2002 and today the JC Flowers II Fund has $7 billion under management.
There, I spoke to Ken Spain, communications director of the private equity Growth Capital Council.
Regulators would prevent commercial banks from owning hedge or private equity funds, and limit non-client related trading.
“Virtually none of the big names in private equity have spoken up to defend the industry,” Sorkin wrote in mid-January.
private equity firms thus come to financially distressed corporations and offer to buy out the existing shareholders.