A Transitory Overview about Private Equity Industry
An investment capital source that can be obtained
from high end individuals or wealthy organizations or like pension funds, used
for investment in a diverse range of projects that are not funded by privately
traded stock is known as private equity. It is often the case that along with
borrowed cash, the money private equity company raise, is ploughed into firms
that are seen to be under developing and are believed to be able to perform
much better.
Over recent years, there has been an increase in
growth of private equity firms. They basically find sources of capital, usually
a combination of investment and borrowing capital from wealthy individuals and
then ploughing it into a needy and under-developed business. The company or
business that gets selected will be one that has been recognized as
under-performing and would therefore gain from this injection of money and
expertise.
Essentially the idea is that the business will be
brought back into profitability and then sold off after few years for a profit.
Individuals who have invested in a given company will make money from either
just the sale or the profits and the sale. Marc J. Leder
is the CEO of our company, Sun Capital Partners Inc., where he is responsible
for the analysis, due persistence, and execution of numerous private equities
which include consumer products, communications, healthcare, financial services
and leisure.
The government considers private equity firms as a
significant part of the economy, as they lift up dying and dead companies.
Always they are not always successful in their deed, and they sometimes fail
drastically. Some people dislike private equity firms because they believe they
frequently put people out of work or put jobs at risk; that they do not care
about the worker at all and have only profit in mind. The private equity firm
may decide to sell of whole parts of the business as well as putting people out
of work. These are always nearly the parts of the company that are thought to be impossible to turn around and have been considered
unprofitable. This means that all assets and property would be sold and hence
all workers and staff would be laid off.
Marc J. Leder
also served as a Senior VP of Lehman Brothers in New York, prior to being the
CEO of Sun Capital Partners Inc., which is a global private equity firm.
Sometimes, private equity firms are also the subject
of some controversy, as they have appeared in current affairs programs and news
over the years because of the generous tax breaks they receive. Other
organizations and industries feel that this is not fair but the government may
well claim that competition is necessary for the tax environment of these types
of firms so that they do not move abroad. Irrespective of that, many people
feel less sympathy for these kinds of
risks in business as they are seen by some to put up with the already
downward economic situation in some countries.
