The company raiders of the private-equity (PE) business have been memorably in comparison with invading barbarians. However the business is extra usefully described as a machine, which converts buyers’ cash into offers, offers into worthwhile divestments (or “exits”), and exits into investor returns. When operating nicely, this contraption gathers a momentum of its personal. Worthwhile exits generate good-looking returns, which tempt buyers to pump in additional capital, enabling additional dealmaking.
