Holding private equity firms accountable for the decisions and actions of the companies they invest in is a complex and challenging task. Despite the visibility of these firms' influence and control over their portfolio companies, legally piercing the corporate veil to hold them responsible is arduous and varies by state. The strong legal defenses put forth by law firms representing these firms further complicate the process, making it extremely difficult to attribute accountability to private equity firms for the actions of their portfolio companies.
Private equity is a simple concept — a PE firm uses some combination of money and debt to buy a company, then makes a profit — but the reality of what happens to the companies that get acquired is anything but. It's everywhere, and it's not going away. In this summer remix, we're talking with Brendan Ballou, author of Plunder: Private Equity’s Plan to Pillage America, about how we got here and what happens next.
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Decoder is a production of The Verge, and part of the Vox Media Podcast Network.
Our producers are Kate Cox and Nick Statt. Our editor is Callie Wright.
The Decoder music is by Breakmaster Cylinder.
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