DIY deals: How private equity firms buy assets from themselves


  • World
  • Wednesday, 28 Apr 2021

FILE PHOTO: A man walks past the New York Stock Exchange on the corner of Wall and Broad streets in New York City, New York, U.S., March 13, 2020. REUTERS/Lucas Jackson

(Reuters) - What's a fair price when you are selling something to yourself? On Wall Street, that's not a trick question.

A growing number of private equity firms are establishing new funds to buy portfolio companies from funds they already control. With the buyer and seller each an entity controlled by the same private equity firm, scrutiny is growing over how they price such deals.

Limited time offer:
Just RM5 per month.

Monthly Plan

RM13.90/month
RM5/month

Billed as RM5/month for the 1st 6 months then RM13.90 thereafters.

Annual Plan

RM12.33/month

Billed as RM148.00/year

1 month

Free Trial

For new subscribers only


Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!
   

Next In World

U.S. stocks close lower
Czech Republic records over 10,000 whooping cough cases this year
Roundup: U.S. witnesses bird flu outbreaks in poultry, dairy cows
US and allies aim to help Ukraine bolster defenses after aid gap
5 Tunisian fishermen dead after boat sank off eastern coast
Crude futures settle higher
Cargo ship fire in Dardanelles Strait halts maritime traffic
Feature: Students in UK wowed by time-honored cultural treasures of China
2 foreign tourists killed in road accident in Namibia
U.S. dollar ticks down

Others Also Read