Private Equity and the Future of American Capitalism
76 claims analyzed
Claims76
In most years after Toys R Us's private equity acquisition, between 90% and 110% of Toys R Us's gross revenue went to interest payments.
The Illinois overhead garage door manufacturer acquired by KKR employed about 220 people.
Elizabeth Warren has proposed the Stop Wall Street Looting Act every year since 2018.
Private equity fund managers make money only through a 20% incentive fee.
Private equity owns half of America's daily newspapers.
The number of air ambulance flights out of the county containing Riverton, Wyoming increased 650% in a few years after services were cut at Riverton's hospital.
The private equity business model does not require portfolio companies to be successful for private equity firms to make money.
Seventy to eighty percent of the average leveraged buyout is financed by bank loans.
Toys R Us's real estate was sold after the company was acquired by private equity firms.
About 20% of private equity-owned companies declare bankruptcy or go out of business.
Most private equity deals are for small family-owned companies.
Toys R Us workers were laid off without receiving severance guaranteed in their contracts.
Apollo Global Management cut general surgery at Riverton's hospital.
88% of members of the U.S. House and Senate take private equity donations.
Banks are almost always at the top of the creditors list in private equity deals.
Toys R Us was struggling before its private equity acquisition.
Toys R Us lost money on its deal with Amazon.
Amazon made money on its deal with Toys R Us.
Donald Trump wanted to close the carried interest loophole.
Apollo Global Management acquired Riverton's hospital.
Joe Biden wanted to close the carried interest loophole.
Deadspin was profitable when Great Hill Partners acquired its parent company.
Private equity ownership is often associated with benefit cuts.
The average private equity deal lasts five to six years.
In leveraged buyouts, only the portfolio company is responsible for repaying acquisition debt.
Toys R Us had $5.2 billion of debt on its books after it was acquired by private equity firms.
Private equity-owned companies are 10 times more likely to enter bankruptcy than companies not owned by private equity.
The private equity industry started in the 1960s with deals then called bootstrap deals.
Pete Stavros created the nonprofit Ownership Works to give workers at companies acquired by private equity a small ownership stake.
Private equity ownership has accelerated the collapse of local journalism.
Riverton, Wyoming had a population of about 10,000 people.
Riverton's hospital was profitable when Apollo Global Management acquired it.
Apollo Global Management eliminated the obstetrics department at Riverton's hospital.
Toys R Us was courting acquisition offers before its private equity buyout.
Walmart moved into online retail before Toys R Us did.
Amazon ran Toys R Us's web presence under the deal between Amazon and Toys R Us.
Amazon took a cut of Toys R Us's sales under the deal between Amazon and Toys R Us.
The two private equity owners of Toys R Us both made money on the Toys R Us deal.
The private equity owners of Toys R Us never received the 20% incentive fee from the Toys R Us deal.
Hulk Hogan's lawsuit bankrupted Gawker Media.
Private equity ownership is often associated with layoffs.
In leveraged buyouts, acquisition debt is placed on the acquired company.
Private equity controls companies that employ more than 12 million Americans.
Private equity firms manage almost $8 trillion in assets.
A private equity firm has owned Party City.
Peter Thiel funded Hulk Hogan's lawsuit against Gawker Media.
Univision owned the remaining Gawker Media sites after Gawker Media shut down.
Univision sold the remaining Gawker Media sites to Great Hill Partners.
Deadspin's parent company was not profitable when Great Hill Partners acquired it.
Toys R Us was profitable until debt from its private equity acquisition was loaded onto the company.
Toys R Us later liquidated.
Workers at an Illinois overhead garage door manufacturer acquired by KKR received mid-six-figure payouts after KKR sold the company.
Toys R Us employed 33,000 people when its workers were laid off.
The nearest hospital to Riverton, Wyoming was 30 miles away.
Patients could not deliver babies at Riverton's hospital after the obstetrics department was eliminated.
University endowment funds invest in private equity funds.
Barack Obama wanted to close the carried interest loophole.
Amazon moved into online retail before Toys R Us did.
Toys R Us struck a deal with Amazon before Toys R Us was acquired by private equity.
A private equity firm has owned Toys R Us.
A private equity firm has owned Red Lobster.
Deadspin was part of Gawker Media.
Great Hill Partners is a Boston-based private equity firm.
In sale-leaseback agreements, a company sells real estate it owns and leases back the same properties.
Toys R Us declared bankruptcy.
KKR bought an overhead garage door manufacturer in Illinois.
Riverton's hospital had been a for-profit hospital since the late 1980s.
Pension funds invest in private equity funds.
CalPERS is the California Public Employees' Retirement System.
CalPERS is the biggest public pension fund in the United States.
Walgreens was bought by private equity.
Defector was founded by former Deadspin staffers.
Defector is an employee-owned publication.
Hell Gate is an employee-owned publication.