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Many of these were legal, but some may not have been: class action lawsuits in Texas and California alleged that Blackstone’s Invitation charged illegal, excessive late fees to its residents.53 As of December 2022, the Texas case remains ongoing, but the court in California declined to certify the …

In 2012, the FHFA launched a series of auctions of foreclosed homes, with the intention that the purchased houses be converted into rental properties.34 Investors developed new software that estimated the best purchases based on a neighborhood’s schools, crime, and nearness to transit, as well as p…

How did Schwarzman afford to fete himself in this way, welcoming celebrities to his home and building literal temples to celebrate himself? In part, the answer lies in housing. Over the past fifteen years, private equity firms like Schwarzman’s have helped to lead what one commentator called “the b…

Consider the case of cheerleading competitions. Varsity Brands is the country’s leading organizer of these events. As alleged in a class action complaint, between 2015 and 2018, Varsity bought its three largest rivals, all of which are now owned by Varsity, which in turn is owned by Bain Capital.11…

Most private equity firms are paid on the 2-and-20 model: a 2 percent annual fixed fee on all the money it invests and 20 percent of all profits above a certain threshold. The United States taxes money made from investments—so-called capital gains—at a lower level than money made through ordinary l…