Quote of the Week: PE’s Reputation Risk


February 22, 2013

“Unfortunately, for those GPs doing things right, these scandals continue to taint the public image of private equity, making it difficult to convince the public and investors that the private equity model can be good for business.”


Who said it: unquote, a PE industry trade publication


In Context: unquote researched and described PE’s most embarrassing moments in recent years, an effort sparked by the recent horse meat debacle (horse meat made its way into European-branded frozen lasagna in addition to the beef that was supposed to be in it). The company in question was backed by PE.

Here is its summary of PE’s recent embarrassing moments

– Lion Capital-backed Findus  and  Comigel, which is backed by Céréa Capital

– CVC-backed Formula One corruption case

– PE-backed care home patient neglect – KKR, Triton, and Blackstone

– Habbo Hotel fails on child protection – online kids network was backed by 3i and Balderton

The article and quote above picked up on the public relations aspect, pointing out an opportunity for PE players. (Image source: unquote)

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