Private equity's new escape hatch keeps unsold companies in limbo
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Private equity firms have found a new way to avoid taking losses on unsold companies, keeping them in limbo. This 'escape hatch' allows them to transfer ownership to a new entity, effectively wiping the slate clean. The move has raised concerns about transparency and accountability. The trend is a result of the increasing difficulty of selling companies in a post-pandemic market.
This development matters for investors and regulators, as it highlights the need for greater transparency and oversight in the private equity industry.
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Private equity's new escape hatch keeps unsold companies in limbo — shared on Hacker News from ft.com. Trending in tech discussion.
- ▸01Private equity firms are using a new strategy to avoid losses on unsold companies.
- ▸02This involves transferring ownership to a new entity, effectively wiping the slate clean.
- ▸03The move has raised concerns about transparency and accountability.
- ▸04The trend is a result of the increasing difficulty of selling companies in a post-pandemic market.
Private equity's new escape hatch keeps unsold companies in limbo. Private equity's new escape hatch keeps unsold companies in limbo — shared on Hacker News from ft.com.
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