The promise of high returns — whether true or not — has encouraged retirement funds to pour money into PE investments, with terrible results.
Private equity is the latest economic boogeyman. And there are good reasons for that.
Assets in the private market have grown exponentially in the last 20 years, especially in North America, and now amount to nearly $12 trillion. The number of companies backed by private equity more than doubled between 2006 and 2020, while the number of public companies shrank. Private equity firms are buying up companies that provide services we use and depend on: hospitals, nursing homes, real estate, chain restaurants and even prisons.
Continue reading the entire piece here at Bloomberg Opinion (paywall)
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
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