The Private Equity Stakeholder Project, a nonprofit watchdog of the private equity industry and Wall Street, has launched the Private Equity State Risk Index to assess the effects of private equity on different states.
The private equity industry exceeds $13 trillion on assets with investments from these firms posing risks across various sectors, according to the report. In healthcare, arguments against private equity-owned facilities revolve around deteriorating patient care, increased medical costs and the closure of critical care facilities.
The index aims to provide stakeholders with insights into the relative risks states face from private equity buyouts across four key areas: healthcare, workers and jobs, housing and pensions. It also includes information on state policies that protect people and communities from the private equity industry and its negative effects.
Here are the 10 states facing the greatest risk from private equity, according to 16 unique indicators in the index:
1. New Mexico
2. North Carolina
3. Arizona
4. Florida
5. Nevada
6. Georgia
7. Washington
8. Texas
9. Colorado
10. Tennessee
"The Private Equity State Risk Index shows all of us the private equity threats in our own backyard and gives state leaders the tools to protect the people they serve," Chris Noble, policy director at PESP, said in an April 9 news release shared with Becker's. "By providing transparent data on the risks associated with private equity investments, we empower communities, working families and policymakers to advocate for change and protect their states from the threats posed by unchecked private equity firms."