Key Takeaways
- • The Private Equity Stakeholder Project (PESP) calls on the new Congress and state legislatures to hold private equity firms accountable for rising costs in housing, utilities, healthcare, and employment, citing the 2026 midterm elections as a mandate for affordability relief.
- • PESP reports Blackstone raised rents at 66 San Diego apartment properties by an average of 38% in under three years, nearly double the local rental market increase, with one property seeing a 79% jump.
- • Private equity-backed companies accounted for 50% of the largest U.S. corporate bankruptcies in the first half of 2026, according to PESP.
- • PESP states private equity firms now own 558 hospitals, nearly one in eight private hospitals nationwide, and that two-thirds of manufacturing bankruptcies with liabilities exceeding $500 million in 2025 involved private equity-owned companies.
- • PESP's policy push centers on regulating the industry across housing, utilities, and healthcare, though the article does not specify particular legislative proposals.
Summary
The Private Equity Stakeholder Project (PESP) argues in a statement that policymakers must hold private equity firms accountable as part of any serious effort to address affordability, following the 2026 midterm elections, which PESP says signaled voter demand for relief from the rising cost of living. PESP Executive Director Jim Baker said Congress and state legislatures have an opportunity to "rein in the private equity industry" and that the organization looks forward to working with policymakers on "bold, comprehensive change."
In housing, PESP research cited by the group found Blackstone raised rents at 66 San Diego apartment properties by an average of 38% in less than three years, nearly double the increase across the local rental market, with one property seeing a 79% increase. At a manufactured housing community in Nevada, a resident reported that Carlyle Group raised her monthly lot rent from $685 to $1,010, and at another Carlyle-owned community in California, annual rent increases rose from 3% to 8%.
PESP also points to utilities and essential services. BlackRock-owned Minnesota Power is requesting an almost 18% electricity rate increase after a one-year rate freeze tied to its acquisition expired. Blackstone-backed NIPSCO raised residential electricity bills by 26.7% in 2025 after a 17.8% increase in 2024. In Louisiana, Magnolia Water customers have faced nearly annual rate increases since a private equity-backed company acquired the utility in 2020, leaving them with the state's highest sewer rates. PESP also cites a Michigan utility acquired by a private equity fund in 2014 that later sought rate increases, returning in 2018 seeking nearly $10 million more.
PESP further cites healthcare and corporate distress. According to the group, private equity firms now own 558 hospitals, nearly one in eight private hospitals nationwide, and their expansion into Medicaid-funded services has raised concerns about billing practices, public spending, and access to care. PESP also reports that private equity-owned companies accounted for two-thirds of manufacturing bankruptcies with liabilities above $500 million in 2025 and 50% of the largest U.S. corporate bankruptcies in the first half of 2026, which it says threaten jobs and economic stability. These figures are presented as PESP's research findings and have not been independently verified in this summary.
In housing, PESP research cited by the group found Blackstone raised rents at 66 San Diego apartment properties by an average of 38% in less than three years, nearly double the increase across the local rental market, with one property seeing a 79% increase. At a manufactured housing community in Nevada, a resident reported that Carlyle Group raised her monthly lot rent from $685 to $1,010, and at another Carlyle-owned community in California, annual rent increases rose from 3% to 8%.
PESP also points to utilities and essential services. BlackRock-owned Minnesota Power is requesting an almost 18% electricity rate increase after a one-year rate freeze tied to its acquisition expired. Blackstone-backed NIPSCO raised residential electricity bills by 26.7% in 2025 after a 17.8% increase in 2024. In Louisiana, Magnolia Water customers have faced nearly annual rate increases since a private equity-backed company acquired the utility in 2020, leaving them with the state's highest sewer rates. PESP also cites a Michigan utility acquired by a private equity fund in 2014 that later sought rate increases, returning in 2018 seeking nearly $10 million more.
PESP further cites healthcare and corporate distress. According to the group, private equity firms now own 558 hospitals, nearly one in eight private hospitals nationwide, and their expansion into Medicaid-funded services has raised concerns about billing practices, public spending, and access to care. PESP also reports that private equity-owned companies accounted for two-thirds of manufacturing bankruptcies with liabilities above $500 million in 2025 and 50% of the largest U.S. corporate bankruptcies in the first half of 2026, which it says threaten jobs and economic stability. These figures are presented as PESP's research findings and have not been independently verified in this summary.
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