In The News Today

Posted at 9:47 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Just another hidden use of debt to make things “look” better…but debt is a double edged sword!

Private Equity’s Trick to Make Returns Look Bigger
March 9, 2018

It is perhaps the most important number in the private-equity world. It is also at risk of being massaged in a way that undermines the industry’s credibility and adds dangers when a downturn comes.

The internal rate of return is the key performance metric published by private-equity firms. A percentage that measures annualized returns, the IRR is based on a complex set of numbers tied to fund cash flows. Investors use IRR to choose which funds to invest in.


Bill Holter’s Commentary

I wonder what the % borrowing number is for basic life sustenance items…like food?