Comment by skeeter2020
2 years ago
No, this isn't true. First they no longer own it; we don't know what the sale terms were. Second (and more importantly) PE is a term-based play; if you do it right you get both the returns over the life of your fund by directing more revneues to payouts, aggresively cutting costs and eroding long-term investment (like commercial real estate) AND you sell at the right time to generate a multiple return (before all those unfavourable leases start to impact financials). Red Lobster 18-24 months ago could have sold at a premium to the $2.1B purchase price.
Are you accusing the PE fund of defrauding the buyer? If not then it's just a bad investment on their part and lucky for the PE fund, but if you are then you damn well better provide some actual evidence.