Washington, D.C. – New investor protections announced today by the Securities and Exchange Commission (SEC) have the potential to curb widespread practices that have allowed Wall Street’s $25 trillion private fund industry to harvest tens of billions in fees at the expense of public pensions, retirees, and other savers – all to the advantage of some of the richest people in the world.
Since the Great Financial Crisis of 2008, one of the murkiest corners of the financial market – private credit – has exploded in size as investors chase higher returns. Private credit, also referred to as non-bank direct lending, has become the fastest area of growth in corporate lending.
Washington, D.C. – The Biden administration and Congress should use all available means to curb the increasingly harmful effects of private equity’s control of massive swaths of the healthcare sector, according to a new report from Americans for Financial Reform Education Fund.
“We have to think much more deeply as a society about how we view housing and whose interests are worth protecting the most,” [Caroline] Nagy, [senior policy analyst at AFR] said. “Looking at our tax and finance policy and seeing that we’re incentivizing the exact opposite is a very difficult, problematic place to be in.”
Americans for Financial Reform Education Fund and 12 other signers submitted a letter to the Securities and Exchange Commission reiterating the need for the SEC to finalize a strong set of rules to better protect investors in private funds, which include hedge funds and private equity.
AFREF submitted a comment to the Centers for Medicare and Medicaid Services (CMS) on their proposed rule to require the disclosure of important information regarding the ownership and control of nursing facilities, including when an owning or managing entity is a private equity (PE) company or a Real Estate Investment Trust (REIT).
Private equity and healthcare are incompatible and AFREF states in the letter that the current lack of transparency in ownership of facilities exacerbates the problem and shields owners and investors from accountability for the performance of the businesses they own and welcomes the disclosure rule.
“Despite its public statements to the contrary, Carlyle is a driving force behind climate change through its substantial financing of greenhouse gas emitting sectors,” said Oscar Valdés Viera, co-author and research manager at the Americans for Financial Reform education fund.
A new investigation reveals that the Carlyle Group has been quietly scooping up fossil fuel assets over the past decade, producing an estimated 277 million metric tons of CO2 emissions.
AFREF submitted a letter with partner organizations expressing a mutual concern about the lack of transparency regarding the ownership and control of nursing facilities that serve Medicare and Medicaid beneficiaries.
Unbeknownst to most people with loved ones in nursing homes, it’s often nearly impossible to determine if the facility you’ve entrusted your family member to is owned by a private equity firm – an ownership structure that has been shown to result in worse health outcomes for patients, at greater cost. Within the past two decades, the once-obscure private equity industry has ballooned in size from $1 trillion in 2008 to nearly $4.5 trillion in 2021.