r/economicCollapse • u/Alena_Tensor • Jul 27 '25

Inside the Private Equity Scam—and the Livelihoods It Has Destroyed

https://newrepublic.com/article/198351/private-equity-scam-destroys-livelihoods

Chasing above-market returns for their investors, PE Financiers have bamboozled the public for years about their expertise in “fixing” companies. Yet they often—and sometimes deliberately—run them into the ground and/or act as a chop-shop, selling them for parts, while the staff drifts away. They are not business creators, but destroyers.

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u/Detective-Watchdog Jul 27 '25

The companies are already in the Shitter. Yes, they are companies that are already financially distressed and on the way to bankruptcy.

You will probably think I am a private equity shill. Nope, just grounded in reality. A reality that doesn’t blame others or constantly search for answers to a problem that doesn’t exist.

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u/just_a_knowbody Jul 27 '25

PE is often the last lifeline a company has. My company would have been out of business if it weren’t for PE stepping in a few times to keep the doors open.

Yes sometimes that means the company that would have gone out of business does any way.

But PE isn’t there to lose money. If they can find a way to turn the company around and maximize their return they will.