Why Does Brad Jacobs Avoid Private Equity?

David Senra reads Brad Jacobs's reason for avoiding private equity when he funds a company: the firms can be fair-weather friends and a focus on their own interest can push aggressive decisions. He has made four exceptions, and all four turned out very well. When another option is open, he would rather not use private equity funds.

He still leaves one opening. Private equity investors are entrepreneurial as a group, and an early-stage company that needs to raise a lot of money can find them ready to write the check. The four exceptions worked. His pattern is to treat that money as the exception when a young company needs a large check, and a poor default when other capital is available.