Is Anger At The Private Equity Industry Really Justified?
from the black-stone dept
Ever since private equity firm Blackstone came public earlier this year, there's been a strong backlash against the entire industry. Congress is looking to close a tax loophole that effects both private equity and VC firms, prompting some venture capitalists to lash out against private equity executives for drawing political scrutiny and potentially ending the party. But as Andrew Ross Sorkin points out, all of this outrage pointed at the industry (and Blackstone chief Stephen Schwarzman specifically) is a bit overdone. Plenty of executives could accused of having a big ego or of throwing big, garrulous parties in their own honor, as Schwarzman has done. Ultimately, it was the company's IPO that served as the catalyst for the outrage, so Blackstone, simply by virtue of being first to go public, has borne the brunt of it all. That being said, if things start to deteriorate economically, expect even more outrage at any executive perceived as having cashed out at the top.