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It turns out that private equity does more to save the jobs of workers at struggling companies than other types of owners do.
With second homes, the delinquency rate for both types of owners was rising in concert until the stock market crashed in September 2008.
What ought to be the subject of more inquiry is why private equity firms are more willing and able to stick with troubled companies than other types of owners.
wall street journal When Private Equity Saves Jobs | Richard Farley, a partner in the corporate practice of Paul Hastings, writes in the Another View column that private equity does more to save jobs at struggling companies than other types of owners do.
This paper examines the compatibility of various project delivery methods with specific types of owners and projects.
But both groups bought companies through leveraged buyouts; both relied heavily on junk bond financing; and under both types of owners in many cases major assets were sold, costs were slashed and employees were laid off.
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"If people care so much about having owners who care about the company, maybe the U.S. and the U.K. have the wrong type of owners," he said.
The nature of the type of owners we have got has changed [since I started in the job.] But you could not go ten days without winning even back then in '74.
But they are attracting a new type of owner -- one that has Charleston alarmed.
"Nestlé could be an acquirer," he said, "and G.E. is the type of owner who would know what to do if the chance to recognize value came along".
Turning over the two big properties may involve "repositioning" -- looking for some totally different type of owner-occupant and completely renovating office space to suit one or more tenants, the Cushman brokers acknowledged.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com