Evan Davis, BBC News’ economics guy, has a pretty good blog called Evanomics (nice). Yesterday he posted on the hot topic of the moment, private equity. And as a blog post, for me it is pretty close to perfect.
For those that do not feel they know what private equity is all about, let me offer a few arguments on both sides.
First an explanation. Private equity is quite simple. Investors borrow money (from banks); they usually add a little of their own and use the cash to buy companies. Often the companies they buy were publicly-owned – in the sense that a large number of relatively anonymous shareholders buy and sell shares in them on the stock market – and once bought, they become privately-owned, in that their shares are no longer traded.
Davis provides explanation and opinion, facts and commentary. Despite reading articles every day in the papers about private equity, I never understood as fully as I do know after reading this post.
It’s a great template for new bloggers in terms of style and content.