IMG sold
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Looks like the company that purchased them has a lot of experience in Boarding/Day School including two in Chicago.
Both campuses of the British International School of Chicago.
A callous private equity firm, who's mission is to squeeze the maximum amount of cash out of an operation, is all too happy to see the opportunity many modern day parents serve up.
People are really nuts.
People are really nuts.
Opinion | Private Equity Is Gutting America — and Getting Away With It
Private equity firms make loads of money when their schemes succeed and lose very little when they fail.
Good for them many parents stupid and delusional someone should be making money off then and IMG has just come up with the best system for it.
I was originally going post what I have now pasted below, but felt a snarky comment would do until you linked the NYT article and put more fire in my belly:Opinion | Private Equity Is Gutting America — and Getting Away With It
Private equity firms make loads of money when their schemes succeed and lose very little when they fail.www.nytimes.com
So, another group of Private Equity boys jumps into youth sports.
For the sake of the kids --- not the parents --- I hope that what I have witnessed often in my professional career does not happen here.
Because I saw no mention of the kids’ development as people, nor would I expect a Private Equity firm to have anyone's but their own interest at heart, let the cynical part of me indulge a bit here:
- BPEA EQT sets IMG up as a subsidiary as part of its portfolio play
- IMG takes on huge debt that the lenders bury in some junk bond "instruments"
- BPEA EQT executives draw huge salaries syphoning out of the new new pile of debt money and from parents/friends of/agents (like buying part of race horse) willing to pay $100K per year so junior get even more exposure so his value in the Transfer Portal (or wherever the next plain of amateur athlete free agency is) is maximized in case he/she can't get on the field at his first college stop, or 2nd because he/she is surely destined for the NFL, NBA, WNBA, Wimbledon, etc.
- BPEA EQT has an exit strategy to play along for 5-6 years, laughing their way to the bank and sell again to the next PE player, does an IPO which funnels more capital for syphoning into the operation, or plays a Chapter 11-game, while the original lenders are cool with it the Chapter 11 because they made their money on the front end in deal related fees, packaged up the debt, sold it off and built any late game losses into their model from the beginning
- This is what success looks like and is what we reward in our modern world
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I would be surprised. Harder to open a "school" like that in the Midwest than in Florida. Better chance somewhere like Arizona or Colorado
What's worse? Private corporate grifting or D.C. grifting? I would say D.C...by far!
