Top US enforcer wants more scrutiny of ‘roll up’ acquisitions which build dominant market shares
Over the past decade or so, the likes of Blackstone, KKR and Apollo have expanded into even bigger corporate and industrial juggernauts, owning companies seemingly across every sector of the economy from retail stores to dating apps. At the same time, they have created a financial ecosystem as key lenders to each other.
The expansion of the buyout groups is eye-popping. Private equity firms announced a record 14,730 deals worth $1.2tn globally last year — that is nearly double the previous high in 2007. Employees at buyout firms pocketed $23.4bn for their work — significantly more than their investment banking pals operating on Wall Street.
The healthcare sector is an example. Buyout deals in the industry ballooned from about $42bn in 2010 to $120bn in 2019 and many essential services, including emergency room services, mental health clinics and dentistry are now in the hands of private equity.
Read more: FT
