Skip to main content

Does Private Equity Need A New Name?

  • Author:
  • Updated:

That's what Andrew Ross Sorkin proposes in his latest New York Times column.

In the 1970s, private equity deals were called “bootstraps,” which was hard for anyone to understand. In the 1980s, they became “leveraged buyouts,” but that was an ugly term with negative connotations. And in the 1990s, the industry moved toward the term “private equity,” which seemed a lot more polite, but has come to represent secrecy.
Now that so many firms are expected to go public, they need a new name. David M. Rubenstein of the Carlyle Group has been pushing “change equity.” Maybe it’s simply “the new conglomerate,” but that doesn’t feel that original. I’m pushing for “operational finance,” which encompasses the best aspects of the business.


How to Show That You’re No Gordon Gekko
[New York Times]