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Why restaurants are on the private equity menu

Nov 19, 2024
Blackstone buys a majority stake in sandwich chain Jersey Mike’s. Fast-casual is a growing segment of the enormous but risky restaurant trade.
Blackstone has acquired majority ownership of Jersey Mike’s, a sandwich chain with about 3,000 locations.
Justin Sullivan/Getty Images

Private equity is buying up businesses in the skilled trades

Skilled trades businesses, like HVAC repair and plumbing companies, are seen as stable, future-proof business models. Private equity wants in.
Private equity firms will buy a few skilled-trade businesses, then combine them to make one much larger company. "The idea is you improve the margins and efficiencies," said Te-Ping Chen from the Wall Street Journal.
Craig Hudson/The Washington Post via Getty Images

Is private equity in trouble?

Trader Jared Dillian says PE firms are having problems exiting their investments, and he worries that the sector poses systemic risk.
Blackstone, helmed by CEO Stephen Schwarzman, is one of the world's top private equity firms.
Alex Wong/Getty Images

The impending private equity blitz on NFL teams

Sep 6, 2024
In this week's "Make Me Smart" newsletter, we explore the NFL's decision to allow private equity to buy portions of football teams, the relationship between car weight and safety and the costs of an extremely hot summer.
Al Messerschmidt/Getty Images

Private equity's role in health care is under increasing scrutiny

Apr 8, 2024
A Senate committee and two federal agencies are taking closer looks at how private equity’s ownership of hospitals and physician staffing companies is affecting health care.
"About 25% of emergency room departments are staffed by private equity-owned physician companies," said Sabrina Howell of NYU’s Stern School of Business.
Spencer Platt/Getty Images

Why do companies go private?

There's news that department store chain Nordstrom is looking to go private, after a previous attempt failed.
Nordstrom's stock jumped 10% last week after a report said the company is looking to go private.
Scott Olson/Getty Images

How the buyer of Subway could turn around the struggling sandwich chain

Aug 25, 2023
A private equity firm has agreed to buy Subway. It may need to close stores in the U.S., but expand overseas.
Subway has struggled for the past decade. The chain has suffered from a scandal with its longtime spokesperson, tough competition, and an excess of franchise locations.
Michael M. Santiago/Getty Images

For public good, not for profit.

Banking crisis may be fueling the rise of so-called "shadow banks"

May 15, 2023
Hedge funds and private equity loans might lend like banks, but they're not regulated like them.
Shadow banks are financial institutions that provide loans but don't take deposits.
Spencer Platt/Getty Images

How private equity creates a "circle of pain" in the US economy

Apr 27, 2023
Private equity "is a major driver of the enormous gulf between rich and poor in this country," says author Gretchen Morgenson.
The private equity firm Blackstone Group, led by Stephen A. Schwarzman (center) is among the top buyers in leveraged buyouts over the last several decades.
Brendan Smialowski/AFP via Getty Images

Private equity investment is flooding into addiction treatment. Is that a good thing?

Jan 25, 2023
When a new operator took over an addiction treatment center in Nashville, former employees say they saw cutbacks.
Mitzi Dawn works in addiction treatment and spent part of her career as a songwriter. Her “Sing & Share” events were part of the offerings she says were cut when a private equity-backed company took over Nashville Recovery Center in 2021.
Blake Farmer/WPLN News