Why Private Equity?

The Domestic Workers Justice Initiative is focusing on private equity (“PE”) because:

Conduct Representations: PE firms make numerous representations about ethical and lawful conduct. They can be held accountable for these statements.

Client Representations: Industry clients make similar representations to their own stakeholders, and they are responsible for those statements.

Federal contractors: Universities and many PE firm subsidiaries are large federal contractors and are bound by expansive federal anti-trafficking laws which categorically prohibit placement fees.

Role Model: PE firms are likely at the very top of the pay/prestige pyramid. What they do, others will follow.

Industry Leverage: Collectively and with their portfolio companies, the PE industry is likely the world’s largest single purchaser of legal, accounting, and banking services, so they have leverage over these firms.

High Fees: PE fees are at least 10 times higher than passive manager fees, and they are paid by a relatively small number of institutional clients. They must keep these clients happy.

© Domestic Workers Justice Initiative

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