Warren’s war on PE threatens unintended consequences

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By Karoliina Liimatainen
25 Jul 2019

US Democrat senator, and presidential hopeful, Elizabeth Warren wants to upend private equity. She has proposed a bill which would stop PE money flowing to some sectors altogether and would send deal numbers and valuations plunging. But it could also lower borrowing costs, reports Karoliina Liimatainen.

Last week, Warren unveiled a reform bill which would make PE firms ultimately responsible for the debts, pensions and legal liabilities of their portfolio companies. That would leave sponsors on the hook if one of their companies defaulted and would limit their ability to do highly leveraged buyouts. ...

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