Private equity firms have come under intense scrutiny ever since Café Coffee Day founder VG Siddhartha was found dead earlier this week in a case of suspected suicide and purportedly wrote in a letter that he was being pressured by an investor to buy back its shares.
After the letter came to light, several publications and people on social media have criticised the practices of PE firms. While some people said that PE firms are charging high interest rates on the debts they offer to entrepreneurs, some found fault with the buyback clause that’s typically part of a PE deal.
But do PE firms really follow ‘unfair’ business practices? VCCircle attempts to delve deeper into the matter to explain how PE deals, including private credit transactions, are structured and whether the PE investors alone should be singled out for what essentially is a far broader problem.