In many cases, the layoffs can be directly attributed to this style of ownership. Private equity firms were responsible for about 600,000 job losses in the retail industry over a decade when the industry as a whole actually added jobs. Sometimes it's just pure mismanagement. A lot of times it goes back to what you were just talking about, which is this short-term focus.
If you want to maximize the value of your home for decades, you might update the kitchen. But if your time frame is one week, then you might burn down the house. Brendan Ballou is a federal prosecutor and special counsel at the Department of Justice, where he led the antitrust division’s work on private equity. He's also authored a new book, “Plunder, Private Equity’s Plan to Pillage America.” Ricky Mulvey caught up with him to talk about: - The techniques many private equity companies use to generate short-term returns - A key misunderstanding about the fall of in-person retailers - Private equity’s impact on medical billing, bakeries, and insurance Companies discussed: CG, KKR, BX Host: Ricky Mulvey Guest: Brendan Ballou Engineer: Tim Sparks
Learn more about your ad choices. Visit megaphone.fm/adchoices