Mitt Romney’s career as a private equity manager has suddenly become a hot issue in a party that normally avoids any criticism of the business community. We’ve heard Rick Perry describe private equity as “vulture capital.” Newt Gingrich has painted Romney’s former firm as a business equivalent of the Grim Reaper while subtly connecting it to the ’08 bailouts.
A wild and weird Republican primary season just keeps getting wilder and weirder.
Sean Hazlett who writes at Reflections of a Rational Republican is an investment banker and analyst. He’s put together a fantastic explanation of what private equity is and why it’s an issue.
Why private equity is seldom an option for middle income investors:
The objectives of private equity firms:
Hazlett goes on to explain how different types of private equity players might approach a particular business and why some may be more resented than others.
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