Trump’s Labor Department clears the way for private equity funds to tap directly into workers’ retirement money
U.S. private equity funds are currently sitting on close to a trillion dollars in uninvested funds (‘dry powder’) earmarked for leveraged buyouts - taking companies private, loading them with debt, stripping their assets and selling them on. They continue to raise substantial sums, including from public and private employee pension funds, despite the shortage of investment opportunities relative to their cash pile. The fee racket ensures they rake in profits from simply sitting on the money. But their appetite is boundless, and the Trump administration’s Labor Department has now offered them a new prize to feast on.