Deals
Prison Food Is Latest Target in Campaign to Divest Holdings
- Group urges pensions to dump H.I.G. over commissary company
- Public pensions are relying on private equity to boost returns
Photographer: Noah Berger/Bloomberg
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A labor-backed nonprofit is pushing state and local pensions to reconsider their ties to H.I.G. Capital LLC, a $34 billion private equity firm that owns one of the nation’s largest providers of food services to prisons.
The Private Equity Stakeholder Project is calling on public pensions in states such as Massachusetts and Ohio to stop investing with H.I.G. if the firm refuses to shed its ownership of food services and commissary company TKC Holdings Inc. and inmate health care service provider Wellpath, claiming in a soon-to-be-released report that they’ve cut corners in order to rake in huge profits at the expense of inmates.