In many cases private equity groups buy a business in conjunction with an experienced operator to run the business. If it makes sense, after the rent and details are worked out investors may be looking for an annual return on the invested money with a plan to sell and make money from the business and real estate appreciation. A lot of times, before the purchase is finalized, the exit strategy, including the number of years a property will be held, is already worked out
The principals understand money but are usually smart enough to know their limitations.
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