This is so disingenuous I don’t even know where to start.
How does income tax disincentivize work? You still generate positive income with a tax.
I don't believe the 1.3% is correct, as I think it's closer to 20-25%. Data I have seen supports that they put up $1.3bn of equity in the acquisition, in addition to ~$5Bn of debt (at ~7x leverage I think? -- that's…
Totally agree, I thought we were arguing to bail out employees here. That's what I'm aware of based on what I've seen going on in the industry
That is simply not true. Management fees are such a small percentage of contributed capital. And, typically doesn't count towards your returns calculation.
I work at a PE firm. There are multiple strategies employed, but the name of the game is not to lose money. Disagree with the term "value creation" - fine - but my point is there is zero incentive to lose money.…
It's disingenuous to say PE doesn't care. They have every incentive to preserve and generate equity value. That is literally their business. However, the issue is employees are also hurt, not just equity and debt…
My point is no need to target preservation of equity value but instead ensure those facing job loss are supported. However, the current legislation doesn't allow portfolio companies to take bailout capital as a result…
It's not about bailing out the investments, but about preserving jobs. Fine, attach restrictions for taking bailout capital, but that should be the purpose.
This is so disingenuous I don’t even know where to start.
How does income tax disincentivize work? You still generate positive income with a tax.
I don't believe the 1.3% is correct, as I think it's closer to 20-25%. Data I have seen supports that they put up $1.3bn of equity in the acquisition, in addition to ~$5Bn of debt (at ~7x leverage I think? -- that's…
Totally agree, I thought we were arguing to bail out employees here. That's what I'm aware of based on what I've seen going on in the industry
That is simply not true. Management fees are such a small percentage of contributed capital. And, typically doesn't count towards your returns calculation.
I work at a PE firm. There are multiple strategies employed, but the name of the game is not to lose money. Disagree with the term "value creation" - fine - but my point is there is zero incentive to lose money.…
It's disingenuous to say PE doesn't care. They have every incentive to preserve and generate equity value. That is literally their business. However, the issue is employees are also hurt, not just equity and debt…
My point is no need to target preservation of equity value but instead ensure those facing job loss are supported. However, the current legislation doesn't allow portfolio companies to take bailout capital as a result…
It's not about bailing out the investments, but about preserving jobs. Fine, attach restrictions for taking bailout capital, but that should be the purpose.