What's to love about private equity? A lot, according to a video from a private equity lobbying group.
Aligned with a concerted effort to revamp the industry's somewhat tainted image, the video by Private Equity Growth Capital Council argues “average Americans in all 50 states benefit the most from the investments that private equity makes." It goes on to a show exactly how those benefits work, using an impressive amount of capital in blue arrows and dollar signs.
For example, if a company gets in trouble and puts an S.O.S. sign on its roof, the video shows private equity will loop a life-preserver around that sign via helicopter, saving the company and preserving jobs, all while strengthening communities.
But all the blue ink might not assuage critics of the private equity industry, who point to negatives such as the common practice of outsourcing jobs to cut costs or in some cases the purposeful bankrupting of companies to turn a profit. It's this dark side of the industry that's even caused one of its own executives to say that the presidential candidacy of Mitt Romney, former CEO of major private equity firm Bain Capital, "lacks credibility."
(Hat tip: The New York Times.)
Related
Before You Go
