Michael Flaherman

Private equity reform by the people who pay the bill.

[Michael Flaherman @mflaherman]

The efficiency argument collapses when you ask what happens to the cash back from enormous volumes of private-equity portfolio-company spending flowing through credit cards (including payroll)? Investors don't even know to ask this question.

If retained by PE managers (see evidence below), the rebates would constitute an important form of PE manager compensation.

https://t.co/b2lRzFn5c3

[Michael Flaherman @mflaherman]

@davidsirota Especially when you include the credit card cash back rebates from their portfolio companies.

[Michael Flaherman @mflaherman]

@davidsirota Major financial issue hiding in plain sight: what happens to the cash back from enormous volumes of private-equity portfolio-company spending flowing through credit cards (including payroll)?

If retained by managers (see evidence below), the rebates would constitute an important new form of indirect compensation.

https://t.co/b2lRzFn5c3

[Michael Flaherman @mflaherman]

@JamesSurowiecki Major financial issue hiding in plain sight: what happens to the cash back from enormous volumes of private-equity portfolio-company spending flowing through credit cards (including payroll)? If retained by managers (see evidence below), the rebates would constitute an important new form of indirect compensation.

https://t.co/b2lRzFn5c3

[Michael Flaherman @mflaherman]

@ddayen While you’re at Milken talking with PE executives, one question worth asking: what happens to the cash back from portfolio-company credit-card spending? If retained by managers (see evidence below), it would constitute an important new form of extraction.

https://t.co/b2lRzFn5c3

[Michael Flaherman @mflaherman]

@ChicagoDmitry And a very simple mechanism applied to the portfolio enterprises — credit-card rebates on their spending — can scale into real money. It’s disclosed, sort of, but still feels like something new under the sun.

https://t.co/yEEIY2KwN0

[Michael Flaherman @mflaherman]

Hey @iheartmindy -

Wondering if you've heard about this. In private equity, a very simple mechanism — credit-card rebates on portfolio-company spending — can scale into real money. It’s disclosed, sort of, but still feels like something new under the sun.

https://t.co/b2lRzFn5c3

[Michael Flaherman @mflaherman]

@jbrous41 Hey @jbrous41

Wondering if you've heard about this. In private equity, a very simple mechanism — credit-card rebates on portfolio-company spending — can scale into real money. It’s disclosed, sort of, but still feels like something new under the sun.

https://t.co/yEEIY2KwN0

[Michael Flaherman @mflaherman]

Hey @Ryan_Deitsch--

Wondering if you've heard this angle. In private equity, a very simple mechanism — credit-card rebates on portfolio-company spending — can scale into real money. It’s disclosed, sort of, but still feels like something new under the sun.

https://t.co/b2lRzFn5c3

[Michael Flaherman @mflaherman]

@SteveRattner @nytopinion Hey @SteveRattner--

Wondering if you know about this. In private equity, a very simple mechanism — credit-card rebates on portfolio-company spending — can scale into real money. It’s disclosed, sort of, but still feels like something new under the sun.

https://t.co/yEEIY2KwN0

[Michael Flaherman @mflaherman]

@ContingentWest @hotdamhistorian @ContingentWest

Speaking of that--in private equity, a very simple mechanism — credit-card rebates on portfolio-company spending — can scale into real money. It’s disclosed, sort of, but still feels like something new under the sun.

https://t.co/yEEIY2KwN0

[Michael Flaherman @mflaherman]

@BrendanHartnett In private equity, a very simple mechanism — credit-card rebates on portfolio-company spending — can scale into real money. It’s disclosed, sort of, but still feels like something new under the sun.

https://t.co/yEEIY2KwN0

[Michael Flaherman @mflaherman]

In private equity, a very simple mechanism—credit-card rebates on portfolio-company spending—can scale into real money. It’s disclosed, sort of, but still feels like something new under the sun.
@ddayen

https://t.co/yEEIY2KwN0

[Michael Flaherman @mflaherman]

@matthewstoller

In private equity, a very simple mechanism — credit-card rebates on portfolio-company spending — can scale into real money. It’s disclosed, sort of, but still feels like something new under the sun.

https://t.co/yEEIY2KwN0

[Michael Flaherman @mflaherman]

@NMinow

Something new under the sun. In private equity, innocuous disclosures can mask potentially vast value-extraction via lowly credit-card cash-back rebates.

Makes 1980s CEO country club dues seem quaint by comparison.

https://t.co/yEEIY2KwN0

[Michael Flaherman @mflaherman]

@AdelitaForAZ @SpeakerJohnson @AdelitaForAZ - Friendly question. When are we going to see you confront Speaker Johnson when he's in front of cameras? You, with your Bible in hand, loudly announcing, "Mr. Speaker, I'm ready to take the oath."

If people are telling you it would be rude, they're wrong.

[Michael Flaherman @mflaherman]

@AdelitaForAZ Friendly question: Why aren't you in the Capitol chasing around Speaker Johnson whenever he appears? If he steps in front of cameras, you should be there, Bible in hand, announcing, "Mr. Speaker, I'm ready to be sworn in." God helps those who help themselves.

[Michael Flaherman @mflaherman]

@Acyn Why isn't @AdelitaForAZ in the Capitol chasing around Speaker Johnson whenever he appears? If he steps in front of cameras, she should be there, Bible in hand, announcing, "Mr. Speaker, I'm ready to be sworn in." Democrats need to learn to play the game.

[Michael Flaherman @mflaherman]

@samstein Why isn't @AdelitaForAZ in the Capitol chasing around Speaker Johnson whenever he appears? If he steps in front of cameras, she should be there, Bible in hand, announcing, "Mr. Speaker, I'm ready to be sworn in." Democrats need to learn to play the game.

[Michael Flaherman @mflaherman]

@factpostnews Why isn't @AdelitaForAZ in the Capitol chasing around Speaker Johnson whenever he appears? If he steps in front of cameras, she should be there, Bible in hand, announcing, "Mr. Speaker, I'm ready to be sworn in." Democrats need to learn to play the game.