Private equity investors are financial engineers
A few quotes from this nice article: The tricks investors use against us
Private Equity investors are foremost rewarded for protecting their fund’s capital.
We are more interested in good low-risk businesses, than great high-risk businesses.
What we won’t mention is that very few of the people we deal with represent good, solid, low-risk businesses willing to sell equity at below market rates. Founders need to create this perceptionin order to gain the upper hand.
They are financial and legal engineers.