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Cedar Fair’s management flip-over is not unusual for a private equity deal. As these things go, it is not a relatively large participation stake. Still, it is probably not going to cheer Cedar Fair investors who are facing large losses on their investments. In this case, Cedar Fair’s management participation has to hurt since Cedar Fair’s problems arise from a failed management decision to buy a rival amusement park operator, Paramount Parks. Unit holders will lose, but management will now get a second bite of the apple with more upside.
Read more from The New York Times.