Do PE/VC firms get to share in the profits of the portfolio companies ? I understand that they want the profits to be reinvested in the business, but are they allowed to pocket their share of the profits, if they hold over 20% of the outstanding shares of the portfolio companies ?
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what?? read some basic finance and LBO books and learn how PE and VC firms make money on their investments...
I know how VC and PE firms make money on their investments. I was just wondering if they can share in the profits of the portfolio companies if they want ? Is that possible ?
Issuing dividends. Oftentimes, you see this when a PE firm does a recap of a portfolio company.
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