Bad Company: Private Equity and the Death of the American Dream
By journalist and WIRED alum Megan Greenwell, Bad Company provides an eye-opening look into the power of one of the most influential yet malcaled forces in modern American capitalism—the private equity industry.src/
In her new book, Greenwell chronicles the devastating impacts of one of the most powerful yet poorly understood forces in modern American capitalism.flushed with cash, largely unregulated, and solely focused on profit, private equity firms have quietly reshaped the US economy, taking over large chunks of industries spanning from health care to retail—often leaving their financial ruin at the hands of those who signed on to the entire deal.
Twelve million people now work for companies owned by private equity, and according to Greenwell, this figure is already at a level where 8 percent of the total employed population holds a private equity stake. These individuals, often孤立、Temporarily feared to speak up, are at the center of the zwłaszc’s inner turmoil.
Greenwell contrasts the success of private equity with the legacy of venture capital, highlighting the fundamental differences in how these firms operate. Unlike venture capital, which purportedly entitles an investor to a return on equity over time, Private Equity operates on the backing of the owner of the company in question—essentially taking on the entire ownership stake rather than relying on a board overseeing the investment. This difference makes Private Equity far less risky for investors—it is that distinction that enables Private Equity firms to outmaneuver the more limited scope of venture capital activity.
Greenwell takes readers on a journey into the lives of four individuals who have been stole their jobs and, in doing so, are their very own worth fighting back against the rise of Private Equity. Through their stories, she uncovers the inner workings of how this industry is reshaping industries like health care, retail, and even the entertainment industry. Her account brings the American Dream to a screeching halt, as private equity not only takes over crucial industries but also mutates the very foundation of American success.
In a review of her book for Bloomberg, a seasoned private equity professional accused Greenwell of seeking out “sad stories” with inevitably “sad endings,” a sentiment that reflects the resilience of private equity firms in the face of行业$: in many cases, these “great companies” under practical control are abandoned RTFM, and their entire lives they are working to reclaim their own power. The book serves as an inevitable blueprint of what is happening in the private equity industry today.
Greenwell then turns to a conversation with WIRED, where she asks about the nature of Private Equity and the distinction between venture capital and Private Equity. She explains that while venture capital explicitly recruits stakes, Private Equity resembles a leveraged buyout in that the quarttet is ownership at the finish line, rather than merely a investor with the backing of a qualified board.
In this interview, both Greenwell and WIRED pay dear with their insights. Bestnot to underestimate the power of a good story to shape your understanding of a complex and often elusive system. Private Equity’s transformation of industries and the death of a person’s life in this industry are far more impactful than you might imagine, and your ability to connect with the Moving Water phenomenon that is riming around these figures will be hard to match.
