Private equity accountability transcends electoral politics

As Americans reflect on the outcome of the recent presidential election, the Private Equity Stakeholder Project believes that the need for accountability and transparency in the private equity industry is more important than ever, and transcends electoral politics. Although the incoming administration presents unique challenges for climate, healthcare, housing and labor advocates alike, our mission remains clear: to bring transparency and accountability to the private equity industry and help empower impacted communities.

Private equity’s footprint in the U.S. economy is staggering, with assets totaling nearly $15 trillion—exceeding the GDP of nearly every nation on earth. From healthcare to housing, retail to restaurants, and beyond, private equity’s reach impacts tens of millions of Americans every day. Patients in hospitals, families seeking homes, and workers in countless sectors experience firsthand the risks of an opaque and monopolistic private equity industry. While all investments carry risk, private equity introduces unique dangers. Its business model—one that relies heavily on debt and rapid restructuring for short-term gain—often leaves behind damaged companies and displaced workers, all for the benefit of a select few investors. 

Private equity was behind nearly two-thirds (65%) of billion dollar bankruptcies during the first half of 2024. We have seen a pattern of negligent and dangerous labor practices within the private equity industry, including incidences of child labor, wage theft and violations of occupational health and safety laws. In healthcare, we have seen costs rise, facilities shutter, and patient care deteriorate. In housing, private equity landlords often outbid first-time homebuyers and impose higher rents, making it difficult for working families to secure a stable home. These are just a few examples of the industry’s unchecked impact.

No community in America is immune from the effects of private equity. Policymakers from all backgrounds should examine the risks that private equity billionaires have introduced and act to protect workers, families, and entire communities. Together, we can demand greater transparency and accountability from this industry to ensure that working Americans are prioritized over quick Wall Street profits.

Private equity billionaires spent over $213 million intervening in the 2024 elections. Despite laying off tens of thousands of workers this year alone, private equity will now seek to extract lucrative tax breaks for themselves from the new administration.

The Private Equity Stakeholder Project stands ready to work with leaders from all backgrounds to put protections in place that guard against the worst harms of private equity’s takeover of American life.