August 8 - Business Week - Private equity's proponents see privatizing as a fine way to fix a troubled business. Detractors say hooey—going private is about the money and that such deals do little more than make a few people very, very rich. The question: Do buyout firms like Blackstone Group and Kohlberg Kravis Roberts add value to companies or just collect a heaping wad of cash?
Kenneth Langone, the billionaire investor and Home Depot co-founder, is clearly in the quick-buck camp. As an old-time wheeler-dealer, he views private equity as little more than a way to "get more juice out of a lemon" for investors—and Langone has no problem with that. "It ain't complicated," he said on Aug. 6 at the Academy of Management's annual conference in Philadelphia, explaining why private equity deals get done. "We tend to mystify simple math." Read More.
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