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[QUOTE="CIL, post: 5303990, member: 22"]
Depends upon the GP (PE firm).  Some basically specialize in levering up a corporation, cutting costs, and selling it off for profit in 5-10 years.  I think this is what most people think PE is, because the firms most people know of are mega market firms.

There are others that might make an investment in a company to actually help them grow.  Typically the owner stays and sells a stake to a firm.  For instance, a family owned business feels they need help with distribution of their widget because it’s only sold in CNY and they don’t have the networks to grow, etc…

With regards to college sports, the former isn’t really viable, and the latter doesn’t make sense for a lot of programs.  It also would be horrible for non revenue producing sports.

The reality is it may feel a lot more like private credit.  Give an athletic department a loan / capital injection and expect them to pay it back with interest over time.  Only way I could see it really working.
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