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510 points bookofjoe | 3 comments | | HN request time: 0s | source
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regera ◴[] No.46185157[source]
Dollar stores are private equity with a checkout lane.

In 2025, Dollar Tree sold Family Dollar to a group of private-equity firms: Brigade Capital Management, Macellum Capital Management and Arkhouse Management Co.

https://corporate.dollartree.com/news-media/press-releases/d...

It’s a business model cosplaying as poverty relief while quietly siphoning money from the people least able to lose it. They already run on a thin-staff, high-volume model. That 23% increase is not a glitch. They know their customers can’t drive across town to complain. They know the regulators won’t scale fines to revenue.

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sema4hacker ◴[] No.46185228[source]
Has private equity ever done anything good for anyone outside of the investors?
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gruez ◴[] No.46185605[source]
I'm not sure why private equity is singled out here, when every time a public company does a bad (eg. Boeing), people crow about how public companies only care about juicing next quarter's earnings.
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darth_avocado ◴[] No.46185994[source]
The big difference is the extent to which PE will go to juice the quarters earnings. Public companies cannot and will not just fire all staff, fleece customers to the point they won’t return and take on debt that they have no intention of paying back. PE will do all of the above and more if it means they get their money. Which means, you as a customer get screwed over more when PE is involved.
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gruez ◴[] No.46186211[source]
>Public companies cannot and will not just fire all staff, fleece customers to the point they won’t return and take on debt that they have no intention of paying back.

Why? Is there some code of conduct for public companies but not private ones?

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andrew_lettuce ◴[] No.46186828{3}[source]
Because a PE fund is at most a seven year timeline, and everybody knows it. There is absolutely no incentive to add value beyond the next sale, and often you only need to add the perception of value. To quote my CTO of a PE owned company: "we want to make it look like we're on the road to <big investment in strategic roadmap>", not actually accomplish it
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JumpCrisscross ◴[] No.46186963{4}[source]
> Because a PE fund is at most a seven year timeline

Berkshire Hathaway is a PE fund with permanent capital.

Broadly speaking, making generalisatios about PE is almost impossible because it's an asset class which is, essentially, all non-public business. Instead, it's more useful to think about which element private equity touches you're specifically complaining about: capitalism in general, financial transparency, leverage and liability.

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1. delfinom ◴[] No.46187165{5}[source]
The problem with PE is only the hyper aggressive and generally terrible ones make the news.

The quiet ones that simply run business well, don't make the news.

There are PE firms that specialize in rescuing distressed companies with potential and turning them around. In many cases not firing anyone and holding onto the form they acquired for a long time.

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2. ◴[] No.46187496[source]
3. JumpCrisscross ◴[] No.46187500[source]
> quiet ones that simply run business well, don't make the news

And don’t call themselves PE. They’re a diversified family business. Or a VC fund. Or whatever the fuck the Ellison’s are doing to Paramount.