Elizabeth Warrens of the world have strong argument against private equity: Former Bain Capital director
Democratic presidential candidate Elizabeth Warren, who has spoken out against large corporations and big money, is making the case against private equity and using a recent dispute involving Taylor Swift to support her point.
“The Elizabeth Warrens of the world have a strong argument to make,” former Bain Capital Managing Director Ed Conard told FOX Business’ Neil Cavuto Monday.
Warren showed her support for the superstar after Swift asked The Carlyle Group for assistance in the matter. The private equity firm helped finance the sale of Big Machine Label Group, her formal record label, to Scooter Braun.
In response, Warren tweeted that she has a “plan” to "rein in private equity firms."
While Conard doesn’t agree with the argument, “on the surface” it appears to make sense.
“If you can just buy companies and cut costs and flip them, it doesn't seem fair to the employees,” he said. “I think it's [a] pretty irresponsible management team if you can find investment opportunities like that. I think most investors, small businessmen, managers of companies, know that it's very hard to make money as an investor.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
However, Conard also believes that Warren knows she can generate a ton of publicity for her campaign.
“When you try to defend the status quo against the pain of creative destruction in the long run, it has a big effect on the prosperity of your middle class,” he said. “But it seems very appealing to people in the short run.”