Toys "R" Us not a total loss for private equity fund managers

Toys 'R Us closed its flagship store in Times Square in 2015. (RW/MediaPunch/IPX / AP)

When Toys "R" Us filed for Chapter 11 bankruptcy last month, there was a lot of talk about how the company's private equity owners were out the $1.3 billion they invested back in 2005. But it's not exactly true.

Bottom line: Private equity funds can get paid big fees by their own portfolio companies, and don't always distribute those monies to their own investors.