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re: Let’s Talk about “Private Equity”
Posted on 8/6/26 at 11:52 am to jonnyanony
Posted on 8/6/26 at 11:52 am to jonnyanony
quote:
You'd be hard-pressed to find a successful business emerging from PE even after re-aquisition.
Here’s one a day-laborer like you would know: Jersey Mike’s.
Blackstone made ~15% on their ownership in the last year. (They’re flipping it! The horror!) vs. the equity market—ex-energy and ex-tech—returning 14.6%, while the restaurant sector did -2.2% over the same time.
They IPO’d retaining 76% of their stake, so they’re not actually flipping to bag-holders it turns out.
And through all this, the founder/owner, Mike Cancro, retained a 10% stake (after cashing out a chunk himself at initial sale), and remains CEO and Chairman of the Board.
Jersey Mike’s is the highest valued quick-service restaurant chain by numerous industry metrics, is virtually the largest by enterprise value.
And most detrimental to your weak argument, Jersey Mike’s was just voted by customers to have the highest satisfaction rating in its category, dethroning Chuck-fil-A for the first time ever! ( USA Today)
Tell me, who got the bad deal here?
2
Posted on 8/6/26 at 11:53 am to geauxbrown
quote:Ah, never, actually.
When was the last time UGA football lost money?
Posted on 8/6/26 at 11:55 am to Furlong the Red
Great comeback. Come over from your castle in Texas (???) and make me
Posted on 8/6/26 at 11:56 am to jonnyanony
quote:Well this just got obliterated, by my Jersey Mike’s example
Restaurants are the easiest example, because they in fact have the most to strip.
Posted on 8/6/26 at 11:57 am to Demosthenian
OP ChatGPT'd the shite out of his original post because he's too much a dumbass to make an intelligent argument. 
And what LSU is doing is not a "Private equity takeover."
And what LSU is doing is not a "Private equity takeover."
Posted on 8/6/26 at 12:00 pm to Tigerdew
quote:Sad. Not following any of the discussion.
OP ChatGPT'd the shite out of his original post because he's too much a dumbass to make an intelligent argument. And what LSU is doing is not a "Private equity takeover."
Good attempt though? From your position of feeble understanding.
Do they let you eat cookies on your machinists break? Go eat a cookie.
Posted on 8/6/26 at 12:02 pm to Tigerdew
quote:
OP ChatGPT'd the shite out of his original post because he's too much a dumbass to make an intelligent argument.
He's pretty angry in this thread as well
Posted on 8/6/26 at 12:03 pm to Demosthenian
quote:
So the owner of the fast food chain where you work has committed himself to being the sugar daddy for LSU?
There it is
The UGA grad but bigger LSU fan has NIL deals with every SEC team that has a location in their city but UGA fans have convinced themselves he’s one of LSU’s top donors
All because of consecutive 20+ losses to Ed Orgeron
Posted on 8/6/26 at 12:05 pm to Demosthenian
That’s a load of bullshite. Ask just any newspaper company how PE investment has worked out. And that’s well within your to doesn’t exist time frame.
Posted on 8/6/26 at 12:13 pm to Demosthenian
quote:
I used to like LSU. Now I just feel sad for how addicted they’ve become and far they’ve fallen.
LSU, alumni, supporters and fans have zero fricks to give concerning whether you approve of what they do.
We already know that Virginia Tech is doing something similar while Utah actually does have a deal with a private equity minority partner.
The B1G was going to partner their entire conference with a PE group but couldn’t get the necessary unanimous agreement. This is nothing new.
Posted on 8/6/26 at 12:21 pm to Demosthenian
quote:
Corporate activist investors that would strip companies of assets and employees to pay down large borrowings of debt have been gone for 35 years
Tell that to former Remington employees and the city of Huntsville and see what reaction you get.
Posted on 8/6/26 at 12:21 pm to Demosthenian
quote:
Well this just got obliterated, by my Jersey Mike’s example
Not at all. Every post-acq IPO looks good in that timeframe. That's the whole point!
Posted on 8/6/26 at 12:22 pm to trackem
quote:
Ask just any newspaper company how PE investment has worked out.
??
Bezos owns the Washington Post. He is keeping it afloat and staff employed. What about that is bad?
Posted on 8/6/26 at 12:24 pm to Demosthenian
quote:
Here’s one a day-laborer like you would know
You come across as a pompous a-hole who has no clue what it is talking about.
Or you work for a private equity group, so the same thing.
Posted on 8/6/26 at 12:26 pm to JohnnyU
quote:Great “it’s nothing new”.
This is nothing new.
It’s still pathetic
It still won’t fix the financial mismanagement that’s occurred
It still signifies you have a broken university with joke leadership focused on all the wrong things and unable to manage the precious asset the state of Louisiana has worked 100 years to build.
The facts of this case still indicate your leadership and the populace have no idea what they’re doing, and alternatively spewing sleight of hand dishonesty or naive ignorance to self-soothe as this disaster roller coaster gets underway
This post was edited on 8/6/26 at 1:04 pm
Posted on 8/6/26 at 12:29 pm to Demosthenian
You are getting completely dismantled in this thread.
Posted on 8/6/26 at 12:29 pm to Demosthenian
quote:
??
Bezos owns the Washington Post. He is keeping it afloat and staff employed. What about that is bad?
That wasn't a PE acquisition. PE comes with a strict timeline of ownership, this was just a standard holding company acquisition.
Posted on 8/6/26 at 12:30 pm to Demosthenian
1. When people think of private equity, they aren’t referring to the nature of the equity - private versus public - but the meaning - ie, private equity = corporate raider who generates wealth off of strip sales, recaps, cost cuts, and financial engineering.
2. Accurate.
3. Sort of true, but lacks context. The alignment piece is drastically overblown. While some founder rolls 20-40% of their net worth, the PE firm through some fund is investing materially less. Sometimes, depending on how the GP commit is written in the LPA it might be none of the GPs own dollars!
4. Rarely true - most often you’ll find the founders get sidelined and are figureheads or relegated to board seats where they’re structurally the steep minority.
Well, sure an institional investor wouldn’t rationally accept being the exit liquidity. However, they often could be because of adverse selection - the seller (PE) knows way more about the business than some LP - an LP, even sophisticated ones is hopeless in attempting to understand a business at nearly the same level as the seller. Hence, why you have instances where buyers can become bag holders.
2. Accurate.
3. Sort of true, but lacks context. The alignment piece is drastically overblown. While some founder rolls 20-40% of their net worth, the PE firm through some fund is investing materially less. Sometimes, depending on how the GP commit is written in the LPA it might be none of the GPs own dollars!
4. Rarely true - most often you’ll find the founders get sidelined and are figureheads or relegated to board seats where they’re structurally the steep minority.
Well, sure an institional investor wouldn’t rationally accept being the exit liquidity. However, they often could be because of adverse selection - the seller (PE) knows way more about the business than some LP - an LP, even sophisticated ones is hopeless in attempting to understand a business at nearly the same level as the seller. Hence, why you have instances where buyers can become bag holders.
This post was edited on 8/6/26 at 12:35 pm
Posted on 8/6/26 at 12:41 pm to Demosthenian
quote:
public markets and institutional investors, are themselves definitional long-term owners;
This is like debating an OpenAI prompt.
Public market investors include the retail crowd happy to flip sh!tcoins all day long. Public markets just swallowed the SpaceX rug-pull IPO. They are completely overwhelmed with folks trying to grab quick scalps.
And you paint a noble picture of institutional investors but in reality public pensions and other groups tend to be the low end of the intellectual food chain in markets and duped constantly by private market buyside shops.
Dallas Police and Fire, Calpers Pay to Play, etc.
I do appreciate you trying to equate the 25 year old PE analyst with a resume of HBS and one year at Goldman or McKinsey to Steve Jobs or Jeff Bezos.
Are you a industry trade group PR flack?
Posted on 8/6/26 at 12:44 pm to captdalton
quote:This falls into the latter category of heedlessly over-levering and walking away when things go south.
Remington
Which checks out with my statement, as this deal’s parts were arranged ~15 years ago
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