We mentioned yesterday that our favorite class warrior in the Senate – Elizabeth Warren – wants to slam the brakes on private equity funding vital for expanding and sustaining undercapitalized small businesses. Her bill would do this through a witches brew of taxation, regulation and criminal penalties.
She derides these PE firms as “vampires,” but this chart sent to us by a reader shows the rapid expansion of PE expected over the next decade if the industry is simply left alone. She wants to suck the profitability out of these rescue firms. So who’s the real vampire here?