Where do we stand currently on private equity getting into the mix? Yay/nay?

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I’ve only heard nays so far.

likesmart

Nothing good comes from PE except for the owners getting a payout.

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Not just nothing good, actually, only bad happens for the non retiring partners and employees. You are adding an owner who does not work and will siphon profits, permanently handicapping future payouts to employees because of 1 class of retiring partner greed.

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It’s a complete No. doesn’t make sense for anyone except the retiring partner class who can squeeze a bit more valuation from a PE offer than their pension and selling capital back to the partnership. Think about it - partners are owners who work and contribute to the WIP. PE doesn’t work, or provide any strategy that these firms can’t figure out on their own. And most every major firm can obtain financing on their own anyway. If they’re really desperate to enrich the partners, they can just do a leveraged recap themselves.

likesmart

Ask me in a year. Nothing too crazy so far that can be attributable to PE. A lot of people complain and use it as the scapegoat, but it has been okay to this point.

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Vultures

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