Vishal Mehta, Megan Gerking, Omar Pringle, and David Grothouse authored an article for Competition Policy International, discussing the increased antitrust scrutiny of the private equity industry by U.S. enforcement authorities.
“It is no secret that the private equity (PE) industry has reached extraordinary heights in recent years,” the authors wrote. “The past 18 months have been particularly explosive: buyout values and exit multiples have skyrocketed, fundraising has surged, and PE strategies such as buy-and-build and growth investing have experienced dynamic growth. In spite of recent economic headwinds stemming from factors such as rising inflation, high interest rates, and the war in Ukraine, the industry has remained strong. Its allure has even penetrated the rare air of pop culture royalty, with reality star Kim Kardashian recently announcing the launch of SKKY Partners, a private equity firm focusing on consumer products, hospitality, luxury, digital commerce, and media.”
They added: “Against this backdrop, antitrust scrutiny of PE by the Federal Trade Commission and the U.S. Department of Justice Antitrust Division has intensified, as political rallying cries and sharp rhetoric have transformed into enforcement action with real economic consequences.”