Introduction to Private Equity

pop synthpop, tuareg synthwave · 4:47

Listen on 93

Lyrics

[Verse 1]
Behind closed boardroom doors they gather round
Pension funds and wealthy families abound  
No ticker symbols flashing on the screen
Private equity - the markets you can't see
While public shares get traded every day
These deals take years to craft and years to pay
Buying companies that struggle or that shine
Transforming them before the exit line

[Chorus]
Private money, private gains
No exchange, no daily chains
Buy it, fix it, sell it high
That's the PE battle cry
Illiquid gold for patient souls
Private equity controls
Remember this refrain
Private money, private gains

[Verse 2]
General partners hunt for diamonds rough
Limited partners bring the financial stuff  
They purchase firms with leverage loaded thick
Debt magnifies each strategic trick
Operations experts roll their sleeves up tight
Cut the costs and boost efficiency's might
Five to seven years they hold their prize
Then harvest profits when the value flies

[Chorus]
Private money, private gains
No exchange, no daily chains
Buy it, fix it, sell it high
That's the PE battle cry
Illiquid gold for patient souls
Private equity controls
Remember this refrain
Private money, private gains

[Bridge]
Management buyouts, venture capital dreams
Distressed investing, growth equity schemes
IRR and multiples measure the score
Twenty percent returns or maybe more
But lock your cash for decades in between
No liquidity till the exit scene

[Verse 3]
Why do institutions choose this winding road
When public markets offer lighter load
Diversification beyond the stock exchange
Alternative returns within their range
Companies get capital to expand and grow
Without the quarterly pressure's ebb and flow
Portfolio theory says don't put eggs in one basket
Private equity's another investment casket

[Final Chorus]
Private money, private gains
No exchange, no daily chains
Buy it, fix it, sell it high
That's the PE battle cry
Illiquid gold for patient souls
Private equity controls
Now you know the refrain
Private money, private gains

[Outro]
From pension funds to endowment halls
Private equity answers investment calls
Alternative assets in portfolios wide
Private money working behind the divide

← Private Equity | Types of Private Equity: Buyout vs VC vs Growth →