The Rise of Private Equity's Shadow Economy Raises Alarms
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Private equity has grown rapidly, now owning 20% of US corporate equity vs 4% in 2000, making a fifth of the market "invisible".
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Taking companies private exempts them from financial disclosures, allowing wrongdoing and instability.
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The lack of transparency emboldens private equity firms to act recklessly, like in nursing homes.
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The growth of this "shadow economy" poses risks of a crisis from overleveraging like in the 1920s crash.
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calls grow for more oversight, like the reforms after the 1929 crash, but government action so far is limited.