Ian Carroll

Amazon was a juggernaut that spelled the demise of traditional retail stores, and in 2017, roughly 7,000 stores and 50,000 jobs evaporated. Between 2015 and 2017, of the 43 large retailers and supermarket companies that filed for bankruptcy, more than 40% were owned by private equity firms.

Amazon was a juggernaut that spelled the demise of traditional retail stores, and in 2017, roughly 7,000 stores and 50,000 jobs evaporated. Between 2015 and 2017, of the 43 large retailers and supermarket companies that filed for bankruptcy, more than 40% were owned by private equity firms.

But what's worse, private equity has started to master the art of the leveraged buyout, where they don't actually put up the money to buy a business, but instead just take out a loan using the business they are about to buy, but don't yet own, and they use that as a collateral to secure that loan.

But what's worse, private equity has started to master the art of the leveraged buyout, where they don't actually put up the money to buy a business, but instead just take out a loan using the business they are about to buy, but don't yet own, and they use that as a collateral to secure that loan.

But what's worse, private equity has started to master the art of the leveraged buyout, where they don't actually put up the money to buy a business, but instead just take out a loan using the business they are about to buy, but don't yet own, and they use that as a collateral to secure that loan.

Quote, many private equity firms ship in only about 1% to 2% of the equity needed for a leveraged buyout and skim fees and interest throughout the deal. If things go well, the firms take a huge cut of the profit when they exit. If everything blows up, they usually still escape with nary a burn.

Quote, many private equity firms ship in only about 1% to 2% of the equity needed for a leveraged buyout and skim fees and interest throughout the deal. If things go well, the firms take a huge cut of the profit when they exit. If everything blows up, they usually still escape with nary a burn.

Quote, many private equity firms ship in only about 1% to 2% of the equity needed for a leveraged buyout and skim fees and interest throughout the deal. If things go well, the firms take a huge cut of the profit when they exit. If everything blows up, they usually still escape with nary a burn.

Another common tactic used to gut a company is once you control it, you sell off all the real estate to your real estate buddies and then force the company, Toys R Us, to lease back its own properties for monthly rent, further sinking the balance sheet. The private equity model, often called vulture capitalism, is to loot and flip, not to invest or run companies well.

Another common tactic used to gut a company is once you control it, you sell off all the real estate to your real estate buddies and then force the company, Toys R Us, to lease back its own properties for monthly rent, further sinking the balance sheet. The private equity model, often called vulture capitalism, is to loot and flip, not to invest or run companies well.

Another common tactic used to gut a company is once you control it, you sell off all the real estate to your real estate buddies and then force the company, Toys R Us, to lease back its own properties for monthly rent, further sinking the balance sheet. The private equity model, often called vulture capitalism, is to loot and flip, not to invest or run companies well.

And many people don't realize just how many beloved brands have been bought out through these types of leveraged buyouts. This is just a small smattering of recent leveraged buyouts, mostly by private equity, but sometimes by public megacorporations as well, as in the example of Kraft Heinz.

And many people don't realize just how many beloved brands have been bought out through these types of leveraged buyouts. This is just a small smattering of recent leveraged buyouts, mostly by private equity, but sometimes by public megacorporations as well, as in the example of Kraft Heinz.

And many people don't realize just how many beloved brands have been bought out through these types of leveraged buyouts. This is just a small smattering of recent leveraged buyouts, mostly by private equity, but sometimes by public megacorporations as well, as in the example of Kraft Heinz.

The big boys also realized during these years that forming cozy relationships with big consulting firms is a great way to simultaneously mismanage a company and take absorbent fees while you do it. The consulting industry is ruled by the big three. That would be McKinsey, BCG, and Bain & Company. Some of the big private equity firms even have associated consulting firms or vice versa.

The big boys also realized during these years that forming cozy relationships with big consulting firms is a great way to simultaneously mismanage a company and take absorbent fees while you do it. The consulting industry is ruled by the big three. That would be McKinsey, BCG, and Bain & Company. Some of the big private equity firms even have associated consulting firms or vice versa.

The big boys also realized during these years that forming cozy relationships with big consulting firms is a great way to simultaneously mismanage a company and take absorbent fees while you do it. The consulting industry is ruled by the big three. That would be McKinsey, BCG, and Bain & Company. Some of the big private equity firms even have associated consulting firms or vice versa.

McKinsey & Company has MIO partners. Bain Capital spun off Bain & Company, which are obviously totally separate companies. And although they sometimes work together, they would never collude or do anything below board. Never. This is actually exactly what was happening to GameStop leading into the 2021 short squeeze that rocked the world.

McKinsey & Company has MIO partners. Bain Capital spun off Bain & Company, which are obviously totally separate companies. And although they sometimes work together, they would never collude or do anything below board. Never. This is actually exactly what was happening to GameStop leading into the 2021 short squeeze that rocked the world.

McKinsey & Company has MIO partners. Bain Capital spun off Bain & Company, which are obviously totally separate companies. And although they sometimes work together, they would never collude or do anything below board. Never. This is actually exactly what was happening to GameStop leading into the 2021 short squeeze that rocked the world.