DIY deals: How private equity firms buy assets from themselves


  • World
  • Wednesday, 28 Apr 2021

FILE PHOTO: A man walks past the New York Stock Exchange on the corner of Wall and Broad streets in New York City, New York, U.S., March 13, 2020. REUTERS/Lucas Jackson

(Reuters) - What's a fair price when you are selling something to yourself? On Wall Street, that's not a trick question.

A growing number of private equity firms are establishing new funds to buy portfolio companies from funds they already control. With the buyer and seller each an entity controlled by the same private equity firm, scrutiny is growing over how they price such deals.

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