Umair Haque / Bubblegeneration
umair haque  

 
 


Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.


 
Tuesday, November 24, 2009

The Private Equity Shuffle


A nice illustration of how under the rules of financial capitalism, endless games are played with companies.

But rarely does the private equity shuffle create value of any significance.

See the problem with an economy run by beancounters shuffling companies like they were trading cards?

It's simple.

If private equity investors could actually create value by shuffling companies, the same companies wouldn't keep being shuffled ad infinitum. They'd improve to the point that they wouldn't need further restructuring. Conversely, the fact that companies are flipped like pancakes is a dead giveaway that the entire asset class is rent-seeking writ large.

-- umair // 7:07 PM // 0 comments


Comments:
Post a Comment
 

Recent Tweets







    input

    due diligence
    ventureblog
    a vc
    techblurbs
    tj's weblog
    venture chronicles
    terranova
    the big picture
    gigaom
    venchar
    bill burnham
    babak nivi
    n-c thoughts
    paidcontent
    techdirt
    slashdot
    london gsb
    mefi
    boingboing
    blort
    hardwax
    betalounge

    ing
    morgan
    chicago fed
    dallas fed
    ny fed
    imf
    world bank
    nouriel roubini

    portfolio
    contact

    mail.
    uhaque (dot) mba2003 (at) london (dot) edu

    skype.
    umair.haque

    atom feed

    technorati profile

    blog archives