Reply to thread

Message: [QUOTE="Kolumbo, post: 5187249, member: 4613"] To me that seems like an argument for PE rather than against PE and I am sure you will find this take humorous, as usual. The schools don't have to be profitable in order for PE to make money. PE will take its cut whether the schools make money or not. In fact, that's what makes this attractive to PE. These schools have very deep pockets. I am sure PE firms have all different strategies and they have some winners and some losers. It takes just one PE firm to look at the future cash flows which are in the billions and figure hey, if we can make 5%-10% per year, guaranteed, for 20 years, then sure, let's do it. And that revenue stream is guaranteed by the fine folks of California, Texas, Florida, Georgia, Illinois, Ohio, Penn, Michigan...huge enrollments and large populations willing to pay. [/QUOTE]