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Why Private Equity Is Good for America

I read an interesting article by Tony James, the president of Blackstone, a private equity firm most of you have probably never heard of unless you are an avid Wall Street Journal reader (although they do garner the occasional mention in Fortune and other business and financial press). Mr. James’ provided his top four reasons that private equity can help with the economic recovery or, in other words, is good for America.

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Those reasons are as follows:

  1. Private equity firms help rescue troubled companies.
  2. PE firms provide (or can provide) growth capital to nascent companies.
  3. PE firms help pension funds meet the obligations they have to the recipents of those pensions.
  4. Private equity firms help developing economies grow.

Of course, not all private equity firms do all of the above, which Blackstone apparently does. Some focus on geographic areas or on specific revenue or EBITDA ranges or on a particular stage. Others, usually smaller PE firms, may not pursue pension funds, instead obtaining their funds from other, smaller institutions and individuals. Overall, however, I agree with the premise here. Whether or not one particular fund addresses all these areas, collectively, I believe private equity firms definitely do help as outlined in Mr. James’ reasons and are, indeed, good for America.

To read the article in its entirety, go to Tony James’ Top Four Reasons.

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About Tiffany C. Wright

Hi! I,Tiffany C. Wright, am the author of the ebook, "Help! I Need Money for My Business Now!!" and the book "Solving the Capital Equation: Financing Solutions for Small Businesses", available on Amazon. I am the president of Toca Family Business Services, a short-term & project-based interim management & strategic and financial advisory firm, located in Atlanta, Georgia. In the past five years I've helped small and medium companies restructure and obtain over $31 Million in financing and a similar amount in purchase orders and contracts. I have an MBA in Finance and Entrepreneurial Management from the Wharton School of Business at the University of Pennsylvania and a B.S. in Industrial and Systems Engineering from The Ohio State University. Personal: I enjoy investing. I am a prodigious reader of everything from business books, magazines, and newspapers to horror and popular fiction. I read 4-6 books per month. I also love to travel. I've been to 33 countries on 5 continents and lived in Japan for 2.5 years and aim for a foreign locale twice a year. I am also an athlete and run track on the Master's Circuit. The highlight was placing 7th in my age group in the 2007 World Master's Track and Field Championships in Italy.

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The Resourceful CEO, Tiffany C. Wright

the president of Toca Family Business Services, a strategic and financial advisory firm which provides short-term & project-based C-level management. She is the author of Solving the Financial Equation: Financing Solutions for Small Businesses, available on Amazon.

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