Wall Street in the Wolverine State: How Private Equity Is Affecting Workers, Healthcare, Housing, and Communities

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Introduction

Private equity firms have become increasingly influential in Michigan’s economy. These firms raise money from institutional investors such as pension funds, university endowments, insurance companies, and wealthy individuals and use it to acquire companies, housing, and other assets with the goal of generating high returns within relatively short timeframes.

As of 2024, Michigan was among the ten states with the largest increase in the share of its private sector workforce employed by private equity-controlled companies, reflecting the growing role these firms play in shaping jobs and industries across the state. At the same time, Michigan is also among the top ten states for the share of state pension assets invested in private equity, meaning that the retirement savings of public workers are increasingly tied to the performance of private equity funds.

Across Michigan, private equity firms are active in industries ranging from healthcare and manufacturing to housing and education services. Their investments can bring capital and operational changes, but they can also introduce risks related to high debt levels, cost-cutting strategies, and short investment timelines.

Healthcare provides a clear example of how private equity ownership has expanded into essential services in Michigan. Nine hospitals in the state, about 5.1% of Michigan’s 176 private hospitals, are owned by private equity firms. One example is Apollo Global Management’s ownership of LifePoint Health, which has operated Bell Hospital in Michigan’s Upper Peninsula since 2013. The Michigan Retirement System holds investments in Apollo Investment Fund IX, which controls LifePoint. After bargaining for over a year, nurses at Bell Hospital ratified their first contract in the summer of 2024. Many hospital systems Apollo owns are highly indebted, have cut operating costs and charity care, and in some cases reduced services, received poor quality rankings, and attracted regulatory scrutiny. According to the Lown Institute Hospital Index, several LifePoint facilities rank among the worst hospitals in their states. There are four Apollo-backed hospitals in Michigan.

This report examines how private equity ownership is affecting Michigan’s workers, housing markets, healthcare system, and communities. Drawing on recent research and case studies, it highlights the ways private equity business practices can influence economic stability, service quality, and affordability across the state.

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