Now, private equity firms are swooping in to help while taking majority stakes in exchange.
Last week, the company announced that it would partner with California-based private equity firm Nexus Capital Management and move its test into a for-profit company.
A company owned by private equity can obfuscate what the company actually does to the public and potentially to regulators.
Private equity firms “come into industries that are already suffering from a lack of funding,” said Creeks.
They’ve had a lack of funding and support and so sometimes private equity is the only viable option.
Persons:
New York CNN — It’s, Janet Godwin, “, ” Goodwin, ”, we’ve, Charlie Eaton, Goodwin, Critics, Constantine Yannelis, Rebecca Winthrop, They’ve, ” Powell, Jerome Powell, Powell, Bryan Mena, Chris Isidore, United, Max
Organizations:
CNN Business, Bell, New York CNN, ACT Inc, U.S ., ACT, Nexus Capital Management, ”, CNN, Nexus, Higher, University of California, ” Nonprofit, Nexus Capital, Savvas Learning Company, Private Equity, Project, University of Chicago Booth School of Business, Center for Universal Education, Brookings Institution, P Global Market Intelligence, College Board, Veritas Capital, “, Bank of Canada, Wilson, Fed, United, United Airlines, Boeing, Alaska Airlines, Federal Aviation Administration
Locations:
New York, Iowa, California, Merced, Canada