Wall Street in the Wolverine State

The report examines the growing influence of private equity in Michigan, where 10% of the private sector workforce is employed by private equity-controlled companies. It details how leveraged buyouts and aggressive cost-cutting strategies have led to increased bankruptcy rates, labor disputes, and reduced quality in essential services. Specific case studies highlight staffing shortages and poor rankings at Apollo-owned hospitals, rent spikes in Blackstone-owned student housing, and safety violations and child labor at Hearthside Food Solutions. The document also notes that Michigan has the second-highest number of private equity-owned manufactured home parks in the U.S., often characterized by predatory rent increases and neglected maintenance. Finally, it calls for the Michigan State Treasury and Retirement System to adopt responsible workforce and property management standards to protect public investments and residents.

• Private equity firms have a significant presence in Michigan's labor market, with 10% of the state's private sector workforce employed by companies they control.
• The private equity business model, characterized by leveraged buyouts, often saddles acquired companies with high debt, which can lead to financial instability and bankruptcy. In 2025, private equity-owned companies accounted for 10% of all U.S. corporate bankruptcies.
• In the healthcare sector, private equity ownership is linked to reduced quality of care. For example, multiple LifePoint facilities, owned by Apollo Global Management, were ranked among the worst hospitals in their states in 2024 according to the Lown Institute Hospital Index.
• Private equity firms have aggressively acquired manufactured home parks in Michigan, which has the second-highest number of such parks owned by private equity in the U.S. Residents have reported predatory rent increases and neglected infrastructure, such as arsenic levels above drinking water standards at the Yankee Springs Meadows park.
• Blackstone has significantly increased rents in Michigan student housing. At Campus Edge, average rent per unit rose 27% between Q2 2022 and Q4 2025, while at the Lodges of East Lansing, it increased by 29% over the same period.
• Hearthside Food Solutions, owned by Partners Group and Charlesbank Capital, faced numerous federal safety violations and a child labor scandal in Grand Rapids, Michigan, before filing for bankruptcy in 2024.
• Public funds in Michigan are heavily exposed to private equity; the State of Michigan Investment Board commits 20% of its portfolio to private equity, and the state's Treasury and University of Michigan Endowment have invested over $3.5 billion in the firms discussed in the report.

APA

Private Equity Stakeholder Project (2026). Wall Street in the Wolverine State. https://pestakeholder.org/wp-content/uploads/2026/04/PESP_Report_Michigan_April2026.pdf

Chicago

Private Equity Stakeholder Project. Wall Street in the Wolverine State. 2026. https://pestakeholder.org/wp-content/uploads/2026/04/PESP_Report_Michigan_April2026.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Wall Street in the Wolverine State |date=April 2026 |url=https://pestakeholder.org/wp-content/uploads/2026/04/PESP_Report_Michigan_April2026.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2026wall, author = {{Private Equity Stakeholder Project}}, title = {{Wall Street in the Wolverine State}}, institution = {Private Equity Stakeholder Project}, year = {2026}, month = apr, url = {https://pestakeholder.org/wp-content/uploads/2026/04/PESP_Report_Michigan_April2026.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }