Private Equity Hears from Skeptics

Earlier this month, investing guru Warren Buffett took a public jab at private equity firms at the annual meeting of his company, Berkshire Hathaway. In his speech to shareholders, Mr. Buffett dismissed them as “deal flippers” and suggested that Berkshire would avoid acquiring businesses from buyout firms.
As with many things on Wall Street, Mr. Buffett seems to have inspired a trend. The past few days have brought a flurry of stories questioning the private equity industry, even as many of these articles readily concede that the flow of money to private equity firms shows no sign of slowing.