Editorial from Solidarity 460
“Private equity” — the industry that raises funds from wealthy people to buy out wobbly companies, take them off the stock markets, ruthlessly chop costs and sell off assets, get them profitable, and then sell them off again at a premium — is booming.
According to the Financial Times (24 January), “buy-out groups are setting new records for fund-raising”. They’re even turning away cash from rich people keen to get in on their operations. And the volume of buy-outs they do rose 27% from 2016 to 2017.