Re: What is private equity?

Question: What is private equity?

Transcript:My job at Carlyle has been to largely raise the money; make sure the investors are pleased with what we . . . what we do; to help recruit people to run our various funds; and to try to think of how the firm can be positioned and grow; and how we can make the firm a leading organization in the world in which we operate. One of my other partners spends time overseeing the investment. Another one takes care of a lot of the administrative issues and problems that we inevitably have as an organization gets growing. The three of us have worked together quite well. And when you have three people working together for 20 years, that’s very unusual but also very good when you can get it to be done that way. Private equity is essentially this: It’s the effort by individuals to take a company where you might control it or you might have a stake in it; put capital into it and help improve it; make it more efficient; make it more productive; help it grow; make it more profitable; and ultimately sell your stake so that on behalf of the investors you have, you can realize a return of 25 percent to 30 percent a year. Investors who give us money recognize that what we do is a bit risky. And therefore they want very good rates of return for taking that risk. Historically 25 percent to 30 percent a year return are what investors that we have are seeking. And that’s the kind of thing we do. But in the end private equity is all about creating new jobs, making companies better, making companies more productive, and making our economy more efficient.

The private market is more efficient, says Rubinstein.

NYTimes exposé reveals how Facebook handled scandals

Delay, deny and deflect were the strategies Facebook has used to navigate scandals it's faced in recent years, according to the New York Times.

(Photo by Chip Somodevilla/Getty Images)
Politics & Current Affairs
  • The exhaustive report is based on interviews with more than 50 people with ties to the company.
  • It outlines how senior executives misled the public and lawmakers in regards to what it had discovered about privacy breaches and Russian interference in U.S. politics.
  • On Thursday, Facebook cut ties with one of the companies, Definers Public Relations, listed in the report.
Keep reading Show less

Russian reporters discover 101 'tortured' whales jammed in offshore pens

Protected animals are feared to be headed for the black market.

(VL.ru)
Politics & Current Affairs
  • Russian news network discovers 101 black-market whales.
  • Orcas and belugas are seen crammed into tiny pens.
  • Marine parks continue to create a high-price demand for illegal captures.
Keep reading Show less

Unraveling the mystery behind dogs' floppy ears

Dogs' floppy ears may be part of why they and other domesticated animals love humans so much.

Photo by Jamie Street on Unsplash
Surprising Science
  • Nearly all domestic animals share several key traits in addition to friendliness to humans, traits such as floppy ears, a spotted coat, a shorter snout, and so on.
  • Researchers have been puzzled as to why these traits keep showing up in disparate species, even when they aren't being bred for those qualities. This is known as "domestication syndrome."
  • Now, researchers are pointing to a group of a cells called neural crest cells as the key to understanding domestication syndrome.
Keep reading Show less