Is it management or financial engineering?
Reader comment on: Macey Versus Lenzner
Submitted by SW Jenks (United States), Jan 13, 2012 19:14
You're correct those issues are in bounds. It seems to me that the question is are the buy-out groups providing superior management and improving the underlying business, or are they creating their returns through their fees and payments to themselves made possible by loading their investments with excessive debt. In recent years I suspect that it is almost entirely the latter. Hard to justify the compensation the firms get if it's just financial engineering.
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