Private equity bosses are constantly fighting off criticism that they are "flippers," buying companies and quickly selling them for a profit without adding much real value.
When it comes to real estate, at least, that description seems to apply in the extreme to Edgar Bronfman Jr., who is part of a private equity consortium that owns the Warner Music Group. The New York Observer reports that, just one week after buying an 11-room co-op on Fifth Avenue in New York for $19.5 million, Mr. Bronfman put it back on the market late last month. The new listing price: a cool $24 million.
That's a 23 percent mark-up, if he gets what he's asking for. It's especially remarkable considering that, according to the Observer, Mr. Bronfman did no work on the apartment, which has views of Central Park from a 27-foot-long living room and a 25-foot-long dining room. The Bronfman family never even slept there, an anonymous source told the newspaper.
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