The "quick buck" thing is a catchy meme but not really reflected in the statistics. While there are notable examples of companies that have been destroyed by PE investors they are rare and as a whole PE backed companies outperform after the PE group exits.
That is similar to other data I've seen, and given how loathed the industry is, the fact that it's hard to find contrary data suggests to me that it is accurate.
The PE firms have to exit their investments so they are either selling to dumb buyers who don't realize that PE is value destroying, or they are actually creating value by improving operations and selling to intelligent buyers who are willing to pay for the improved company. The former is definitely possible but you'd think after 40 years buyers would get smarter if that were the case.
See this for example https://www.institutionalinvestor.com/article/2bstpilo30bmb4...
That is similar to other data I've seen, and given how loathed the industry is, the fact that it's hard to find contrary data suggests to me that it is accurate.
The PE firms have to exit their investments so they are either selling to dumb buyers who don't realize that PE is value destroying, or they are actually creating value by improving operations and selling to intelligent buyers who are willing to pay for the improved company. The former is definitely possible but you'd think after 40 years buyers would get smarter if that were the case.