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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. solidsnack9000 · 1790100050 · focus · HN ↗

      As others have mentioned, venture capital is a form of private equity.

      Private equity is investment in non-public companies. A lot of good has come from investment in non-public companies over the years.

      Why can't all investment be in public companies? Not every company can go public: the regulatory and administrative requirements are high. Why are they high? To protect public investors -- to protect the general public.

      In the past, many people put together fraudulent enterprises, sought investment from the public and then walked away with the money, perhaps even pretending to run the business for a while so there was convincing failure story. The regulatory and administrative requirements are there to make this harder, by requiring certain governance and reporting procedures.

      The requirements are high enough that a new venture can not get started by going to public markets -- and in fact may run for several years before it is able to.

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