Private equity, which typically invests in more mature companies, often in the Series B+ stage or later, by acquiring substantial stakes.
Private equity, which typically invests in more mature companies, often in the Series B+ stage or later, by acquiring substantial stakes. It outlines how private equity firms operate and generate returns.
So, what do you do? I buy companies. What kind of companies? I buy companies that are in financial difficulty. That promise must come for a bargain, huh? Well, company I'm buying this week, I'm getting it for a bargain price of about 1 billion. A billion dollars? Yes. Wow. You must be really smart, huh? I only got through the 11th grade. How far did you go in school? I went all the way. Your folks must be really proud, huh? So, you don't actually have a billion dollars? No, I get some of it from banks, investors. It's not an easy thing to do. And you don't make anything >> No. and you don't build anything. >> No. So, what do you do with the companies once you buy them? I sell them. How do you do that? You sell them. Well, I don't sell the whole company. I break it up in pieces and then I sell it off. It's worth more than the whole. So, it's sort of like stealing cars and
selling them for the parts, right? Yeah, sort of, but legal.