Dividend Recap

The surest way to slow growth of any company is to "put" debt on the books. The private equity firms and all their big buyouts right now to us is the equivalent of stealing money.

Private equity firms have turned to dividend recapitalisation's to enhance returns and obtain liquidity from their portfolio companies. In the recap, the company borrows money through high yield debt, commercial loans or derivatives to finance to payment.

Lately, a number of companies owned by private equity funds end up in bankruptcy courts or are left in questionable states of solvency. This process can also take all the money raised in a public company offering leaving the new shareholders with the baggage.

These type of investments and these managers need to be avoided at all costs.

Barkly seen here has only one private company investment and it is direct, we don't need others to manage the investment for us.