Beefed-up Madison Dearborn team seeks $4.5 bln Fund VIII; Court Square senior exec leaves amid fundraising
How will private equity respond?
That’s the issue that some are wondering about as Sen. Elizabeth Warren of Massachusetts emerges as a frontrunner in the 2020 presidential election. According to CNN, Warren is sharing top contender status with former Vice President Joe Biden.
I try to keep politics out of the morning missive, but Warren has picked a fight with Wall Street, including private equity. Warren co-wrote a bill called the Stop Wall Street Looting Act of 2019 that aims to fundamentally change the way private equity operates. She’s going after for profit-colleges and wants private equity to detail their ownership of prison services companies.
Except for some scattered remarks, private equity hasn’t really answered these issues or tried to frame the argument. Private equity needs a better narrative, according to the head of the U.K.’s private equity and venture capital industry body.
“The gap between politics and business has gotten wider,” said Michael Moore, director general of the British Private Equity & Venture Capital Association. “Our job is to seek to address that as well as we can…If we don’t, we will find ourselves under more scrutiny, and not the pleasant kind.”
Moore made the comments at the BVCA Summit 2019 in London Thursday, according to PEI’s Carmela Mendoza.
Hubsters, how would you respond? Should the industry frame an answer and what should it be? Email me your thoughts at firstname.lastname@example.org