KKR and the Pitfalls of the Leveraged Buyout
November 5, 2025
KKR helped invent the leveraged buyout, and today, its model continues to extract value at the expense of workers, patients, and communities. Despite public commitments to employee ownership and responsible investment, KKR-owned companies have faced repeated labor violations, workplace safety hazards, surprise medical billing controversies, anti-union campaigns, and high-profile bankruptcies that cost jobs and jeopardize essential services.
Drawing on case studies across healthcare, manufacturing, consumer retail, and critical infrastructure, this report exposes the systemic risks of debt-driven takeover strategies and highlights why pension funds and policymakers are demanding stronger labor standards and accountability across the private equity industry.
Read the full report to understand how one of the world’s most powerful private equity firms continues to profit — even as the people who power its portfolio pay the price.
Key Points
Debt-loaded buyouts at KKR companies have driven layoffs, distressed debt exchanges, and major bankruptcies — including Envision Healthcare.
OSHA violations and worker safety failures documented across multiple KKR-owned companies, including Refresco, Groundworks, and Brightview.
Wage theft and forced arbitration have limited accountability and suppressed worker rights.
Aggressive anti-union campaigns despite KKR’s employee-ownership messaging.
Surprise medical billing lobbying and political spending linked to KKR-backed healthcare operations, even as frontline workers saw pay cuts.
Regulatory and legal scrutiny, including a major antitrust enforcement case.
Growing pressure from pension funds and policymakers for enforceable labor protections in private equity portfolios.
Read the full report here: pestakeholder.org/wp-content/uploads/2025/11/PESP_Report_KKR-Pitfalls_2025-compressed.pdf
