Motley Fool: Private Equity For Private Investors

Private Equity has become increasingly fashionable in recent years and some investors have made chunky returns. Debenhams (LSE: DEB) is a particularly well known example. Its share price was languishing in 2003, so a consortium of private equity funds took the company private only to sell it back to the stock market three years later, having more than trebled their original investment.

If you owned shares in Debenhams in 2003, I’d imagine that you’re pretty irritated by the Debenhams story. You knew that the company was undervalued back then, but you weren’t able to reap your reward. Instead those mysterious private equity guys made a packet….

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