Many politicians join private equity firms after leaving Washington

Private equity deals sometimes come with layoffs.

Cheap debt and relatively minimal regulation have fueled private equity's expansion in recent years.

There are ETFs that track lawmakers' stock purchases

If you can’t get enough politics in your life, why not invest like a politician? Because members of Congress are required to disclose their stock purchases, you can do just that, and the NANC and KRUZ ETFs make it even easier. NANC, referencing Nancy Pelosi, holds a basket of stocks that Democratic politicians have purchased. KRUZ, referencing Ted Cruz, holds a basket of Republican-held stocks.

Some institutional investors are growing wary of private equity, as certain investments underperform traditional market indices

Private equity often attracts investors who can afford to tie up capital for long periods of time in exchange for higher returns than traditional investments. For many years, private equity at least tracked with the S&P 500 in terms of returns to investors, but in 2024 and 2025, it underperformed and posted declining returns.

Should companies be owned by their workers?

In the last half-century, so-called private equity has transformed industries by purchasing private companies, cutting costs, loading up debt, and then selling the business at a premium—all at a huge profit to the investors. Workers, on the other hand, are often left with nothing. Listen to how both pro-worker economists and a private equity stalwart are trying to shift ownership to workers—a growing tactic proven to improve worker satisfaction and company value.

Private equity firms can be 'powerful partners' or 'formidable competitors'

Under the best circumstances, PE firms can increase a company's value using strategies that might not be suitable for public companies facing pressure for immediate shareholder returns. But PE firms are often portrayed negatively due to the aggressive strategies they sometimes use to cut inefficiencies. As PE has grown, many firms have changed their strategies, shifting away from aggressive scaling to more integrated acquisitions.

Congressional turnover was far more common in the early republic

Many early lawmakers served just one or two terms before stepping aside, reflecting the ideal of the citizen legislator and the discomforts of living in Washington, DC. Longer careers in Congress became typical only later in the 19th century.

Private equity is viewed as an alternative investment

These different types of private equity include venture capital, growth equity, and buyouts.

Research shows that termed-out lawmakers become less active

A University of Chicago and Stanford study found that state legislators barred from reelection sponsor fewer bills, serve on fewer committees, and skip more votes. The research suggests lawmakers are more productive when future elections remain possible.

Washington's Farewell Address warned that political factions and foreign entanglements were the greatest threats to the American republic.

Nearly half of billionaires planned to increase exposure to direct private equity investments in 2026.

Private credit and private equity are both alternative assets

Like private equity fund managers, private credit managers typically raise funds directly from investors, lending to corporations. The borrowers can benefit from the lack of middlemen and resulting efficiency, and the lenders often yield comparatively higher returns.

Former US Senator Mitt Romney cofounded a revolutionary private equity firm

Mitt Romney cofounded Bain Capital—a private investment group that manages more than $215B—in the 1980s before becoming a politician. Bain Capital is credited with revolutionizing private equity by focusing on consolidating and streamlining business operations rather than relying on financial engineering to increase company profits.

Private equity companies are selling off more acquisitions—but at much lower prices

In 2025, private equity exits were up by 5.4%, but the total value of those deals was down by 21.2% year-over-year. An exit occurs when a private equity firm either sells an acquired company or takes that company public.

Silicon Valley’s reign over tech, money, and politics

Tesla and X CEO Elon Musk, OpenAI CEO Sam Altman, LinkedIn founder Reid Hoffman, and others are getting into politics. From Musk’s role in President Trump’s second term to Hoffman’s spending on former Vice President Harris’ presidential campaign, more tech CEOs are expanding into politics. This podcast episode by WBUR and American Public Media discusses what the impact could be with so many tech figures engaging in American politics. Listen here.

In 2024, US private equity posted an 8.1% return

Tracked by Cambridge Associates, 2024 performance saw limited partner distributions overtake contributions for the first time in years. Cambridge Associates, a leader in the space, typically uses a 2.0x+ MOIC (Multiple on Invested Capital) as a benchmark for top-quartile PE fund success.

Explore the differences between private equity, venture capital, and hedge funds

Private equity firms focus on buying and improving private companies with the intent to sell them for profit or take them public. Venture capital is technically a form of private equity in which investors focus on startups and generally don't seek majority control of the company. Hedge funds are pooled investments for sophisticated investors that pursue a wide range of often complex strategies.

The majority of capital in private equity funds is provided by institutional investors

The individuals who invest this initial capital are called the firm's limited partners. Private equity firm LPs include sovereign wealth funds, university endowments, high-net-worth individuals, and more.

Palantir's executives have become increasingly involved in American politics in recent years

Palantir's government contracts have steadily increased since Donald Trump was re-elected in 2024, moving from intelligence and defense to public health and assisting in Elon Musk's Department of Government Efficiency efforts.

Private equity's expansion into healthcare has been criticized for raising patient medical costs

Between 2000 and 2018, PE's total investment in healthcare ballooned from $5B to $100B. While healthcare systems originally began consolidating as a solution to navigating complex regulations (and to make working with insurance companies easier), research suggests that private equity has both increased patient costs and decreased the quality of care in hospitals and doctors' offices.

The first private equity fund was launched in 1960

At the time, the industry—and the public's understanding of it—was rather limited, and few private equity firms existed until the 1980s. The first leveraged buyout is thought to have taken place in 1955.

Investing in private equity is typically reserved for 'accredited investors'

Limiting PE to accredited investors helps protect less experienced investors from large and risky investments. Accredited investors must meet requirements set by the Securities and Exchange Commission—they're typically required to have a net worth exceeding $1M, for instance. (Some users may experience a paywall.)

Private equity firms often use leveraged buyouts to acquire new companies

In a leveraged buyout or "LBO," private equity funds finance acquisitions with debt secured by the target company's assets and cash flows. The PE firm aims to improve operations and leverage the company's profile to pay down debt, thereby increasing equity value.

Roughly 10% of US apartments were owned by private equity firms as of 2025.

See a database of large companies owned by private equity firms

The Private Equity Stakeholder Project tracked more than 200 companies owned by private equity with more than 7,000 employees. Companies on the list include J. Crew, Jersey Mike's Subs, Barnes and Noble, Panera Bread, and Tropical Smoothie Cafe.

Climate change skepticism and business interests politicized environmental protection

The EPA was created under a Republican administration with bipartisan support in response to overwhelming public demand during a time of visible pollution and environmental crises. Beginning with President Reagan, the agency was recast as burdensome, and environmental regulations have been gradually rolled back.

Some Watergate reforms may have fueled today's partisan, confrontational Congress

The newly elected officials after the Watergate scandal dismantled seniority norms, opened committee votes, and televised proceedings—efforts aimed at increasing transparency that, unintentionally, may have fueled the polarized and combative tone of today's Congress.

Members of the United States Congress earn $174,000 annually

Members of the United States Congress have received the same pay since 2009. Leadership roles are more lucrative, and lawmakers become eligible for a federal pension after five years, with benefits tied to the length of service and salary.

Supporters say term limits prevent entrenched power

Advocates argue that term limits stop politicians from becoming career insiders, make government more accountable, and ensure fresh ideas circulate. They believe regular turnover keeps officials closer to the public and less beholden to special interests.

Pension funds' allocations to risky, alternative investments increased by 25% between 2001 and 2021

The portion of pension funds' risky investments, including alternative investments such as private equity, increased from 14% in 2001 to 39% in 2021. Analysts say private equity investments have delivered higher returns than traditional assets like stocks and bonds. Increased investment in private equity has also given pensions a way to recover from the 2008 financial crisis without necessarily investing more money.

Family offices have been increasing their allocations to private credit

Private firms that manage family fortunes have been investing more in alternatives like venture capital and real estate, impacting the wider financial world.

As of 2022, Congress was more ideologically polarized than at any point in 50 years

Research from the Pew Research Center indicates that Democrat and Republican lawmakers have become more ideologically unified internally while moving further apart overall—with Republicans shifting to the right faster than Democrats have shifted to the left.

The venture capital mindset is shaping the US into a 'portfolio state'

For decades, the US has operated as a low-regulation, private-sector-driven, globalized economy (also known as neoliberalism). In recent years, the Trump administration has taken direct stakes (rather than providing subsidies) in private companies with strategic products like semiconductors and rare earths. This paper argues the approach allows the US to capture the upside of growth.

Private credit is a nonbank loan made directly to a business

Similar to private equity, private credit is part of the private markets world. Both strategies offer illiquid, privately negotiated investments for privately held companies. Unlike private equity investors, however, private credit investors typically do not take ownership stakes in the companies they invest in.

Most US House seats stay with the same party for decades

An analysis by the Pew Research Center shows that since the 1920s, the vast majority of House districts have been consistently won by the same party, with only a small share regularly changing hands. This highlights the large advantage incumbents have in House elections.

Hear how gerrymandering is like 'Moneyball applied to politics'

In a 2016 interview, journalist David Daley explained how Republicans used data-driven targeting after the 2010 census to lock in durable advantages, comparing modern gerrymandering strategies to the analytics revolution in baseball.

Visualize the world's top 50 private equity firms in 2025 by capital raised.

Environmental regulation had bipartisan support in the 1970s

During the 1970s, Democrats and Republicans alike backed landmark environmental laws. Congress passed the Clean Air, Clean Water, and Endangered Species Acts with overwhelming bipartisan majorities—reflecting broad public agreement on protecting the environment.

Congress plays baseball together in a bipartisan charity game dating back to 1909

First organized in 1909 by Rep. John Tener, a former pro baseball player, the Congressional Baseball Game pits Democrats against Republicans to raise money for charity—and offers a rare behind-the-scenes look at lawmakers mixing rivalry with camaraderie.

Economists warn that private schools can negatively affect public schools

Lower public school enrollment often means less public school funding. Private school parents, however, frequently argue that public schools simply aren't offering the right education for their children. This podcast episode investigates that back-and-forth in San Francisco, where 30% of children attend private schools, nearly three times the national figure.

Some politicians have argued that Social Security should be privatized

Specifically, some assert that diverting funds into self-directed retirement accounts should replace Social Security taxes and benefits to some extent in a privatized retirement savings system. This article details the pros and cons of privatizing Social Security.

Governments are arguably very dependent on consulting firms like McKinsey and Deloitte

This podcast episode discusses the consultancy industry’s rise and how these firms make billions of dollars, even amid significant scandals.

Between 2016 and 2023, PE spent more than $200B buying British companies

Between the COVID-19 pandemic and the United Kingdom's official departure from the European Union, the UK's economy struggled to recover. This economic strife led to British companies receiving steadily lower valuations than American companies, prompting a huge increase in PE investment. However, interest rates began increasing in 2022, putting pressure on the numerous leveraged buyout deals that took place between 2020 and 2021.

Why Congress doesn't have term limits

Eighty-seven percent of Americans want term limits for Congress. So why don't they exist? The Founders debated this in 1787 and chose not to include them, believing elections would be enough. In the 1990s, 23 states tried to make it happen—until the Supreme Court struck them all down in a 5-4 decision.

George Washington used his Farewell Address to explain his departure and warn the nation

In his 1796 Farewell Address, Washington explained that stepping aside from the presidency would set a republican example of limited power. He also warned against political parties, regional divisions, and permanent foreign alliances that could threaten national unity and independence.

Why private credit is attractive to both businesses and investors

While investors are attracted to the high rates, private credit is particularly attractive to mid-sized businesses that are too small for bank syndication and want faster, more flexible financing options.

Stand-up comedy podcasts have realigned political campaigns

Some of the world’s most popular podcasts, like “The Joe Rogan Experience” and “This Past Weekend w/ Theo Von,” are hosted by stand-up comedians. They also now play a role in American politics, with representatives, senators, and even presidents taking part in their freewheeling conversations

Special-purpose acquisition companies let companies skirt the IPO process

A video explains how private companies have taken advantage of this loophole, why investing in these companies isn’t always a good idea, and how blank-check companies (as they’re commonly called) work.

A lot of what consultants do all day is intentionally kept a secret

Consulting firms also often keep their clients private to maximize the sectors they’re able to secure contracts for and avoid any perceived conflicts of interest.

Critics argue that term limits weaken democracy and legislative effectiveness

Opponents contend that term limits deprive voters of choice, remove experienced lawmakers, and shift power to lobbyists and unelected staff. They believe frequent turnover reduces institutional knowledge and undermines the effectiveness of legislatures.