Infotech

Joe Biden’s victory mortgages the meteoric rise of private equity giants



Posted on Nov 10, 2020 at 7:37 am

American heavyweights in global private equity like Blackstone, KKR, Apollo or Carlyle have a lot to fear from the election of Joe Biden. A close supporter and adviser to Donald Trump, Steve Schwarzman, the founder of the world’s number one unlisted, significantly contributed to the outgoing president’s campaign. He was revealed to be the fifth most important individual supporter, according to the Center for Responsive Politics, along with his peers Henry Kravis and Leon Black.

Under the Trump presidency, the latter benefited greatly from the reduction in taxes and led intense lobbying to see the floodgates open to the 8.9 trillion so-called “401 (k)” retirement plans of American individuals. Largely criticized by the Democrats, soon to the presidency. Former nomination contestant Elizabeth Warren posed as a fierce opponent of the advantages of private equity funds, criticizing their tax advantages, their “Legal looting” of the economy and the thousands of jobs lost by companies stranded by the debt injected by these funds. In June, the senator from Massachusetts again rose to the front, demanding accountability from unlisted managers for their efforts during the health crisis and the protection of companies in which they are shareholders.

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