This doesn’t explain anything.
It's true. Private Equity is destroying (almost) everything it touches.
Its a broad strokes overview but id love to see a deeper documentary exploring how this works. If the companies are taking on all this debt, which makes them subsequently implode, who is taking the losses on the loans and why are they still making those loans?
The flip side is: efficient capital allocation is better for our economy as a whole than trying to save certain jobs for emotional reasons.
Struggling businesses that can’t operate effectively and provide a poor return on capital should be shuttered - the only way to deal with the mountains of paperwork involved is to incentivize very smart people to work at very bad companies. smart people don’t like to work at failing companies. how to reconcile this and ensure efficient capital allocation? huge monetary compensation.