The Asset Class by Hettie O’Brien review – private equity is coming for us all

A fascinating, infuriating, immaculately researched account of how wealth management giants snap up the services upon which rely to extract eye-watering profits

This is a dark tale. In its opening scene the author is in conversation with a textile artist in her workshop under the arches in Deptford – arguably one of the last neighbourhoods that credibly sustains London’s claim to be a city that supports creativity. Hettie O’Brien listens to her talk about rising rents as the railway’s lands are sold to new, invisible owners. The arches have become assets to be traded, and as a result the artist will soon be forced to ply her own trade elsewhere. Behind this story, and many others, lies the hand of private equity. The vast profits reaped by investors, and the toll on society, are all described here in lucid and highly readable prose.

Private equity partnerships are groups of individual and institutional investors with deep pockets. O’Brien traces their rise following the era of deregulation inaugurated by Reagan and Thatcher, and details how Blackstone, the Qatar Investment Authority, Macquarie, KKR and others have bought undervalued assets using borrowed money to minimise their exposure to risk. What happens next is that costs, wages and investment in the future are frequently cut to the bone in the cause of exceptionally high returns.