Thread

1. NegativeK · 1789944184 · focus · HN ↗

   Can someone steelman private equity, please? I'm honestly looking for the upsides (for non-investors) of when PE moves into an industry like medicine and begins buying up businesses that traditionally aren't already large chains.

   I already hear the downsides frequently from someone whose work is directly affected.

   1. matteoraso · 1789946832 · focus · HN ↗

      PE exists because a lot of companies are poorly managed. It's better for your local hospital to be taken over by a PE firm than to go out of business. You can say that it would be even better if the government ran the hospital, and you would be right, but that would require a radical overhaul of the American healthcare system. Until that happens, PE plays a major role in keeping things working.

      1. mmooss · 1789952292 · focus · HN ↗

         > It's better for your local hospital to be taken over by a PE firm than to go out of business.

         It's a false choice. The healthcare system has long dealt with and deal with that situation without private equity.

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