From June, 2016

Private Equity Primer

“Private equity buys up assets at a bargain. It often targets assets that are in trouble and seeks to make them profitable. Private equity typically holds on to businesses before selling them or taking them public on the stock market. Private equity firms are generally paid, in Wall Street parlance, 2 and 20. That means it makes 2 percent of the money it manages. And it takes a 20 percent cut of the profits above a certain threshold.” (The New York Times)