Editorial Board
Is Private Equity a Threat? We Need a Better Answer
The proliferation of leverage in an opaque realm should raise concerns.
Where to?
Photographer: Michaela Rehle/BloombergIs private equity a problem? To what extent could this class of investment funds, which manages almost $9 trillion worldwide on behalf of everyone from wealthy individuals to California teachers, cause or propagate the next financial crisis?
That’s hard to know, because the funds operate largely in the shadows. Officials should urgently demand the information needed to provide a satisfactory answer.