Maria Bartiromo, Anchor, "Closing Bell with Maria Bartiromo," Managing Editor and Anchor, "The Wall Street Journal Report," CNBC
David Bonderman, right, of Texas Pacific Group (TPG) is one of four leading private equity fund executives appearing on this session. In the background is Leon Black of Apollo Advisors LP.
They were once some of the most recognized public companies in America: Reader's Digest, Dunkin' Donuts, Toys-R-Us, Neiman Marcus and Metro-Goldwyn-Mayer. No more. As part of a trend of mergers and acquisitions, these companies were bought by some of the largest private-equity firms in America. Once feared, these private-equity firms have changed their image and are now viewed by many as financial saviors, paying good money for underperforming companies and turning them around. And they are averaging 13 percent returns in the past two decades, which is good for institutional investors. Of course, not everyone views them so positively. Flush with money, and running short on targets, these investors have become more aggressive in their search for firms to buy, which has raised concerns with regulatory agencies both within and outside the U.S. Bottom line: Are private equity firms a help or a hindrance to the economy? Either way, what's driving this trend? Is it overregulation (i.e. Sarbanes-Oxley) or just cheap debt that makes such deals more doable?
Global Conference 2013
Former Prime Minister Tony Blair, philanthropist Bill Gates and Strive Masiyiwa of Econet Wireless discuss advancing prosperity in Africa.
