September 18, 2019

Wall Street Journal: Warren Probes Apollo and KKR on Backing For-Profit Colleges

Elizabeth Warren is demanding answers from private-equity firms about their investments in for-profit colleges, the latest push by a high-profile Washington lawmaker to investigate how buyout firms affect the public.

The Democratic senator from Massachusetts, joined by Rep. Mark Pocan (D., Wis.), wrote to six private-equity firms—including Apollo Global Management Inc. and KKR & Co.—asking for financial information and other details about their investments in for-profit colleges, the lawmakers said Tuesday. They expressed concern that buyout firms were profiting by worsening the quality of education and saddling students with debt.

The letters marked the second probe of private-equity firms launched in Congress this week. On Monday, the Democratic and Republican leaders of the House Energy and Commerce Committee asked KKR, Blackstone Group Inc. and Welsh Carson Anderson & Stowe for an array of documents concerning medical services companies they own and their role in surprise billing practices.

Read the full story on the Wall Street Journal here.

By:  Chris Cumming and Laura Cooper
Source: Wall Street Journal