Gretchen Morgenson: From Wall Street to Journalism
Masters in Business
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The Debt Interest Costs of Private Equity Deals
"The big problem with many of these deals is the debt interest costs," he says. "They are not doing the monitoring and yet they're being paid to do the monitoring" He adds that companies will extract money in the form of what's called dividend recapitalizations. The firms then take a portion of this cash for themselves as a payout to themselves, Cohen says.
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