Not surprisingly, action in the wake of private equity investors Bain, KKR and Vornado stiffing Toys 'R' Us workers of their severance have generated more press than restitution. But some of the ideas bruited about would have real teeth.
Beware of the private equity "innovation," the long-lived or "permanent capital" fund. It is virtually guaranteed to short change investors on returns needed to compensate for the longer holding period.
A leaked memo written for CalPERS by Silicon Valley attorney Larry Sonsisi not only reflects poorly on him and CalPERS, but also validates concerns about corruption.
CalPERS, in a desperate-looking defense of its private equity outsourcing scheme, scores an own goal.
McKinesy and CalPERS appear to be kidding themselves at least as much as the general public on the subject of private equity.