where do private equity firms get their money
Private equity Private equity typically refers to investment funds organized as limited partnerships that are not publicly traded and whose investors are typically large institutional investors, university endowments, or wealthy individuals. Private equity firms are known for their extensive use of debt financing to purchase companies, which they restructure and attempt to resell for a higher value. Debt financing reduces corporate tax burdens and is one of the principal ways in which private equity firms make business more profitable for investors.[1] Private equity might also create value by overcoming agency costs and better aligning the incentives of corporate managers with those of their shareholders.
The Firm (1993 film) Mitch McDeere (Tom Cruise) is a young man from an impoverished background, but with a promising future as a lawyer. About to graduate from Harvard Law School near the top of his class, he receives a generous job offer from Bendini, Lambert & Locke, a small boutique firm in Memphis specializing in accounting and tax law. He and his wife, Abby (Jeanne Tripplehorn), move to Memphis and Mitch sets to work studying to pass the Tennessee bar exam. Avery Tolar (Gene Hackman), one of the firm's senior partners, becomes his mentor and begins introducing Mitch to BL&L's professional culture, which demands complete loyalty, strict confidentiality, and a willingness to charge exceptional fees for their services. Seduced by the money and perks showered on him, including a house and car, he is at first totally oblivious to the more sinister side of his new employer, although Abby has her suspicions.