Private Equity

Of late private investors have come under intense scrutiny - the worst is that it is all negative. Unions especially have been very vocal in their opposition to whatever deal

First these grouping is made up of monied individuals - mainly ex-investment bankers - having disposable funds they retire and use they wealth they have created to sniff out on any under performing businesses to be taken over.

In the process they have created a new meaning to 'Privatisation' - it used to mean state run businesses being taken public (IPOs..). Now it is the practice of buying public companies by a few individuals from the excessive public exposure that a publicly listed company is under into a private-equity firm.

Why are they so unpopular?
They buy companies on credit, making them leaner, and then selling them off at a profit. And of late they have been too ambitious - they don't go after small companies only - JS Sainsbury's and Boots are the latest addition. Since they will turn their acquisitions to be really Private! - they do not need to make the kind of disclosures associated with stock market listing. Unaccountable? In this day and age almost like I'm dreaming.
(Never apologise, Never explain)