Thursday, July 26, 2012
How did this occur? Insight Equity fashioned Hirschfeld into its private equity underwriter (PEU) image. As a Texas Limited Partnership Hirschfeld spins profits out to partners via distributions, which are taxed as investment income at a preferred rate of 15%. In the PEU world this is known as "carried interest."
This is the picture available on Hirschfeld Industries, thanks to their 2009 effort to go public. Had that not occurred, the public would be blind to Hirschfeld's operations. Such cases require a whistleblower or leaker.
I chronicled the private equity explosion on PEU Report and am sad to find an example of greed so close to home.
Click on any image to make it larger.
by PEU Report/State of the Division at 10:29 PM