Private Equity Looters? Academics Aren't Convinced
Two decades of research shows shows buyouts do improve productivity, and not just by cutting jobs.
They’re not all like this.
Photographer: Sunset Boulevard/Corbis Entertainment/Getty Images
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Few industries have an image problem like private equity. Thoroughly in the sights of late-night comedy liberals, private equity is seen as the ultimate expression of all that is wrong with the concept of shareholder value. The popular narrative is that leveraged buyouts allow private equity operators to strip assets, cut staff and move on having pocketed the value. One recent headline in satirical website The Onion proclaimed: “Protesters Criticized For Looting Businesses Without Forming Private Equity Firm First.”