Tag Archives: Hedge Funds and Private Equity

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UFCW Local 400 Testimony: America for Sale? An Examination of the Practices of Private Funds

Safeway, one of the many grocery chains our local union represents, was purchased by Albertsons in 2013. Albertsons is controlled by an investment group led by Cerberus Capital Management, a private equity firm. Albertsons is the second largest grocery chain in the country and is now the largest private-equity owned company in the United States, employing 275,000 people. As you can read in the attached report, we should all be concerned that a private equity firm now controls Safeway. Private equity’s track record is one of preying on companies, their workers, and retirees. Its typical model is to buy up corporations by borrowing money, then sell off the company’s assets to pay off debtors and earn profits, all the while cashing in through management fees. Often, the massive debt incurred to make these purchases causes the company to file for bankruptcy, but even there, the private equity firm walks away with profits, leaving everyone else-especially workers, communities, retirees, and lenders-holding the bag.

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Private Equity Stakeholder Project Testimony: America for Sale? An Examination of the Practices of Private Funds

The Private Equity Stakeholder Project is a nonprofit organization that seeks to understand the impacts of private equity and other private funds investments on workers, communities, consumers and other stakeholders and lift up the voices of those stakeholders in pursuit of more just outcomes. While there are a variety of issues to raise regarding private funds investments, today we wish to focus on two specific issues: (1) the growing impact of private funds investments on the environment and climate change, and (2) the fluctuating numbers of jobs at private equity-backed companies cited by private equity industry groups.

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AFR Polling Memo: New Survey Shows Bipartisan Skepticism of Private Equity Tactics, Support for Reform

Voters support continued reform of Wall Street, and that conviction extends to the private equity industry, according to a new poll by Lake Research Partners and Chesapeake Beach Consulting. Majorities of Democrats, independents, and Republicans, oppose the predatory tactics of private equity industry, and support legislative proposals aimed at correcting its abuses.

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Report: Pirate Equity: How Wall Street Firms are Pillaging American Retail

New report revealing how in the last 10 years, a staggering 597,000 people working at retail companies owned by private equity firms and hedge funds have lost their jobs. An estimated additional 728,000 indirect jobs have been lost at suppliers and local businesses, meaning Wall Street’s gamble on retail has led to more than 1.3 million job losses in total.