Case study: Private equity impacts in Michigan

Private equity firms control nearly 9% of Michigan's private sector workforce, with investments often linked to public pension funds like the State of Michigan Investment Board. The document details how this ownership model has contributed to bankruptcies in the automotive, retail, and hospitality sectors, as well as labor disputes and service reductions in healthcare and waste management. Specific examples include the bankruptcy of Joann and IAC Group, and child labor allegations at Hearthside Food Solutions.

• Private equity firms have a substantial presence in Michigan, controlling nearly 9% of the state's private sector workforce. These firms often receive capital from public pension funds, such as the State of Michigan Investment Board, creating a link between public sector pensions and corporate practices that may harm local residents and workers.
• In the healthcare sector, private equity ownership is associated with reduced services and poor quality. Apollo Global Management's ownership of LifePoint Health, which operates Bell Hospital in Michigan's Upper Peninsula, is cited as an example. Additionally, joint ventures and outsourcing to private equity-owned providers, such as Ascension's partnership with TowerBrook Capital Partners and SCP Health, have been linked to increased medical errors and lower patient satisfaction.
• Private equity ownership has been linked to significant labor violations and instability in Michigan's manufacturing and service sectors. Hearthside Food Solutions, owned by Charlesbank Capital Partners and Partners Group, faced a federal investigation into child labor law violations before filing for Chapter 11 bankruptcy in November 2024. Similarly, GFL Environmental, backed by BC Partners, has faced National Labor Relations Board complaints regarding unfair labor practices in Wayne, Michigan.
• The private equity model's reliance on aggressive debt and short-term gains has contributed to a high rate of large bankruptcies. In 2024, private equity-backed companies accounted for 54% of large bankruptcies (those with over $1 billion in liabilities). In Michigan, this resulted in the closure of 41 Joann locations (owned by Leonard Green and Partners), laying off nearly 1,000 workers, and the bankruptcy of the automotive supplier IAC Group (backed by Gamut Capital Management).

APA

Private Equity Stakeholder Project (2025). Case study: Private equity impacts in Michigan. https://pestakeholder.org/news/case-study-private-equity-impacts-in-michigan/

Chicago

Private Equity Stakeholder Project. Case study: Private equity impacts in Michigan. 2025. https://pestakeholder.org/news/case-study-private-equity-impacts-in-michigan/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Case study: Private equity impacts in Michigan |date=28 May 2025 |url=https://pestakeholder.org/news/case-study-private-equity-impacts-in-michigan/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2025case, author = {{Private Equity Stakeholder Project}}, title = {{Case study: Private equity impacts in Michigan}}, institution = {Private Equity Stakeholder Project}, year = {2025}, month = may, url = {https://pestakeholder.org/news/case-study-private-equity-impacts-in-michigan/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }