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Dog's avatar

Similarly, we've asked the question "Why is Apple valued at $3.2T still in bed with blackrock when they don't need anyone's money?"

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Brett Hyland's avatar

Carried interest isn’t the only, nor primary culprit. Too-high capital gains taxation, too-high income taxation, too-heavy debt loads (with company’s cashing out by selling to PE firms, knowing the firms will load up on debt) all carry responsibility when a PE levered investment goes south. Inflation (government taxation by Congress and the Federal Reserve) is also culpable, increasing insurance rates, retirement costs, etcetera. Government regulation, Obamacare, ESG, DEI also contribute to driving-up costs. All told, there is much less capital available to service debt, to invest in growth, to share with employees.

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