I hear and have personally witnessed many private equity investment firms leverage companies and after a while pass the “hot potato” onto their peers until, in many cases, the public as the last of greater-fools post-IPO finding out valuations no longer live up to value.
Contrast that norm in private equity with what KKR Industrial Group leader Pete Stavros, no doubt influenced by his father, is doing as explained in the following video. A fantastic story of how innovative private equity implementations spread the reward of hard work to all and transform people’s lives. All it takes is the grounded morality to treat people fairly, a trait often missing in the deployment of capital.
I shed a tear on this one and had to share. I am a sucker for the greater good and its payback. Love it.