Comment by MarkusAllen

10 hours ago

Normal investor: "I'll give you money to grow your autism center. Take your time, focus on quality care."

  Private equity: "I'll buy 500 autism centers using borrowed money. The centers will pay back that loan themselves. I'll also charge
  them 'management fees' for my services. I need to sell these in 5 years for 3x profit, so cut staff, raise prices, extend waitlists.
  Quality doesn't matter - the math does."

  The special thing about PE firms: they use a playbook that prioritizes financial extraction over the actual service.

  I made a dictionary of these terms because they're deliberately confusing: https://founderstowne.com/extraction-terms.html

  Terms like "Roll-Up Strategy", "Debt Loading", and "Portfolio Optimization" sound sophisticated. They mean: buy many, make them pay
  for it, cut costs, sell fast.