The Truth About Private Equity

Gary Kominsky talks about the truth about P.E: "Whether you like it or not, it is at least good to know what is it"

According to Kominsky there is a misperception in the general media on private equity regarding what is private equity.

- "Private equity is not activism. The great majority of deals that done in private equity are actually friendly deals, where management, the board of directors and many private companies are essentially involved. This idea that private equity involves taking over companies in a hostile takeover, getting rid of management, getting rid of employees to shrink the business just not fact".

- About the private equity business model Kominsky says: "The private equity model is based on the fact that you're trying to make many investments. you know going in many of them won't work. The idea that the private equity industry is looking to shrink companies is quite the contrary. The business model is predicated on success. This is where the private equity funds get their money to make the investments: you've got sovereign wealth funds, you've got high net worth individuals, you've gotten do youments. this is the greatest thing that I cannot believe people don't understand. The greatest bulk of money that goes into private equity funds come from public pension funds and it comes from corporate pension funds. I know personally operating engineers, large unions, huge investors in equities and private equities. The point here is very simple, you may like private equity, or you may not like private equity, but if you are going to have an opinion, have the right opinion based on who the investors are, what the business model is supposed to do, and whether or not that model is successful",

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