As the private equity killed the American dream

In their new Book, BAD company: Private equity and death of American dreamjournalist and wired alum Megan Green Devasting crronicles of one of the most powerful of the slightly carried out forces low in American modern capitalism. Flow with money, largely unregulated, and inflectly focused on profit, Private equity business They had quietly economy of the economy, taking large industry chunks ranging from health of health to the financial branch in his awake.

Twelve million people in the United States Worked by the Firms Extended, or about 8 per cent of the tails, including a gambling monitoring that has ever had their own rural hospital. Their collective experiences are a harmful account of the innovation is being supported by financial engineer and ways that the Murder is paid by all of them except the top to the top.

In a revision of Bad company by Bloomberg, a long equity equity equity equity of the accuracy green of searching sad stories with inevitably “sad finished“But green green characters did not sit and look like private equity. The book is a portrait of not what is erected the people that people have the vault.

The beginning is spoken to the past month on which private equity and what it is not, as it has transformed different industrial, and what works do to claim their power.

This interview has been edited for clarity and length.

Wired: What is the private equity? How is the trade model different from, say, capital of adventure?

Megan Green: People confuse private equity and capital adventures all the time but is totally racious than normal people did not understand the difference. Bottom, the easiest way of explaining the difference is that the capital city companies invest money, usually in Startups. Are essentially taking a cap in the company and waiting for some kind of making time. They are also usually playing a game significantly longer than private equity.

Height the way private equity, especially with acquisected purchases, which is that I am focused in the book, is to purchase the business. In capital of adventure, put your money in, you are in charge of a CEO, and you probably have a board post. But in the pattern patterned, the private business is really the owner and control the portfolio company’s decider.

How define the private equity companies define success? What kind of companies or business are attractive to them?

In capital of adventure, vc are valuing if to make a deal based solely on if they think this company has to become successful. They seek unicorns. This company is going to be the next Uber? The private equity is waiting for companion money in ways they do not really need the company to make money. That is like the biggest thing.

Then it’s less than a game.

It’s very hard for private equity business to lose money on offers. I get a 2 percent management fee, even if running the company on the ground. They may even get away all of these tricks, like selling the company’s real estate and then load the company’s company on the same land that has used. When the private enterprises of the worship loans to buy firms, the darling by those loans is to the teaching of private equity, but to the transpolos.