The following article discusses issues with regards to private equity ownership of care homes:
business
Description
The following article discusses issues with regards to private equity ownership of care homes:
First, private equity holds us to ransom. Now it wants us to bail out its losses
HYPERLINK "https://www.theguardian.com/profile/willhutton" Will Hutton
The Observor Sun 23 Aug 2020 08.15 BST Last modified on Sun 23 Aug 2020 17.11 BST
It could be your local Pizza Express, the home caring for a cherished relative, your favourite supermarket, even the sports tournaments you love. They are all ventures owned not by their founders or a company quoted on a public stock exchange. They are in the hands of a new class of invisible investors who mortgage companies for self-enrichment, rather as homebuyers mortgage themselves to buy homes.
But while homebuyers hope for a general rise in house prices to increase the value of their initial equity, the invisibles do everything in their power to make the mortgaged company look super-profitable – and then sell it on for a handsome return.
