Private Equity Firms Spiral Into Bankruptcy

When bankrupties happen, is that necessarily bad news for the PE firm? Well, the way they look at it, they have a portfolio and it's just like if you have a little portfolio of stocks. So it's not a problem for them the way it might be for a family that owned one business. Plus which they've extracted their management fee all along. That's not the only fee they collect, even as the company is spiraling into bankruptcy.