WSJ reported:
Hamilton Lane said “one of the key underpinnings” for private-equity firms in the U.S. has been an economy in which corporate profits have risen as a share of gross domestic product, while wages have fallen as a share of GDP in the past 50 years. One reason for this is the “loss of negotiating leverage by labor in the developed world,” the report said.And they consider reigning in the greed and leverage boys populism? It's a rational response to basic unfairness (tax-wise) and shady business practices, which started with leveraged buyouts (LBO). Once Junk Bond King Michael Milken went to jail LBOs got rebranded private equity. They are toxic under either name.
Update 10-30-16: Naked Capitalism had a similar reaction.
