Private equity firms

Private equity-Gesellschaften sind Beteiligungsgesellschaften die Unternehmen privat, also außerhalb der Börse Eigenkapital anbieten. Die Private-Equity-Gesellschaften sammeln bei reichen Privatleuten, Pension fund, Versicherungen oder Stiftungen Geld für einen Fonds. Dieses Geld investieren sie mit häufig überzogenen Renditeerwartungen in Unternehmen.

The holding companies then rearrange these companies to increase profits. To this end, jobs are often cut, work processes streamlined and the company restructured. In particular, assets will be transferred to the private equity companies to finance the purchase price. As a result, the acquired company often lacks the reserves to survive bad times.

The companies are usually sold again after 3 to 10 years. The profits are distributed to the donors, part of which is kept by the investment company. Private equity companies are also criticized because they often finance takeovers not only with their own resources but with high additional loans, which they burden directly on the companies they buy.

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