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cover of episode Private equity’s experiment with worker ownership

Private equity’s experiment with worker ownership

2024/11/6
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Private equity firms like KKR are experimenting with sharing equity with workers to improve employee engagement and company performance, leading to significant payouts for workers and better investment outcomes for the firms.
  • KKR's Pete Stavros introduced an employee ownership program to motivate workers in manufacturing.
  • KKR offered equity to GSI employees, reducing turnover from 50% to 17%.
  • The sale of GSI resulted in a $75 million payout to blue-collar employees, demonstrating the program's success.

Shownotes Transcript

Private equity earned a reputation as a ruthless and lucrative business. But over the past few years, large groups have been doing something that seems like the opposite of their cutthroat image: giving equity worth hundreds of thousands of dollars to the ordinary workers at the companies they own. Antoine Gara, the FT’s US private & institutional capital correspondent, explains how these payouts make business sense for private equity firms – and help soften their tough image.

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For further reading:

Workers getting share in windfalls as private equity firms soften image)

Private equity groups’ assets struggling under hefty debt loads, Moody’s says)

Blackstone plans to list some of its largest investments) 

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On X, follow Antoine Gara (@antoinegara)) and Michela Tindera (@mtindera07)), or follow Michela on LinkedIn for updates about the show and more.

Read a transcript of this episode on FT.com) Hosted on Acast. See acast.com/privacy) for more information.