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by chii
557 days ago
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> This would be like calling Uber a restaurant company just because they launched UberEats. an apt comparison. Some people dislike how ubereats operate. The dislike of private equity is not unfounded, but also the problems don't actually stem from private equity at all, but from bad/misaligned incentives. People tend to want to assume that private equity buying a business will retain the same incentive as the original owners - but the reason why PE would buy a business is _because_ the original owners weren't being perfectly efficient (aka, stingy). This has nothing to do with private equity per se, and has everything to do with capitalism at it's core. |
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