Here’s an idea to help make an unpopular cause a hit.
As a general rule of thumb, it would appear that those who worry about the environment often tend to be the most anti private equity.
But, supposing the private equity brigade embrace the green agenda; supposing they become eco warriors.
In the furore over private equity, it is often overlooked that one of the oldest criticisms of stock markets – one often made by trade unions – is that share holders force companies to focus on the short term.
Too much emphasis is placed on quarterly reporting, they say.
Google endeared itself to many, with its “do no evil slogan” and refusal to make revenue and profit projections.
Ironically, though, there are similarities between the thinking behind Google, the strategy that makes it so popular with investors who like to think of themselves as ethical, and private equity.
And, then there’s the environment. You don’t get much more long term than fighting against global warming. It’s a miracle quoted companies pay it any heed at all.
But now, Kohlberg Kravis Roberts and Texas Pacific, the two US private equity giants looking to buy Texas based energy company TXU, in what would be the biggest private equity deal ever, have waved the green flag.
The talk is that the two private equity companies have been courting the green lobby, and plan to withdraw plans for TXU to build pulverized coal plants in Texas.
All of a sudden, private equity threatens to be the hero of the planet, and in doing so, will have scored a major PR coup in the battle against the antis.
© Investment & Business News 2013