Yet some experts say that if private equity investors weren't willing to take a chance with struggling companies, failure and liquidation might be the only alternative.
The history of private equity investors "is not perfect, but over the last few years they've given a new lease on life to a number of companies and industries," said David Stowell, an associate business professor at Northwestern University.
For The Record
Los Angeles Times Wednesday May 16, 2007 Home Edition Main News Part A Page 2 National Desk 0 inches; 29 words Type of Material: Correction
Private equity: An article in Business on Tuesday about private equity investors misspelled the last name of a Massachusetts Institute of Technology professor. She is Antoinette Schoar, not Shoar.
tom.petruno@latimes.com
walter.hamilton@latimes.com
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Back story
Name: Cerberus Capital Management
Founded: 1992
Headquarters: New York
Chief executive: Stephen Feinberg
Other executives: Former U.S. Treasury Secretary John W. Snow is chairman. Former U.S. Vice President Dan Quayle is head of the firm's global investment section.
Notable acquisitions: Remington Arms Co., Option One Mortgage Corp., Tower Automotive Inc.
Origin of name: In Greek mythology, Cerberus is the three-headed dog that guards the entrance to hell.
Scott J. Wilson
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Source: Times research
