Why are private equity investors buying up fostering agencies & homes in England?

[chrismayla6@zirk.us]

Why are private equity investors buying up fostering agencies & homes in England?

Well, if you think its because they have a better idea of how to support & enhance the well-being of vulnerable your people, you're an incurable optimist.

What the PE firms see is a sector where fee income can be increased easily & money siphoned out of the system to feed investors' 'need' for returns.

Once again we are seeing profiteering on the backs of the vulnerable!

#children #PrivateEquity
h/t Observer

[wood5y@mastodonapp.uk]

@ChrisMayLA6 Shouldn't that be pirate equity investors?

See also: vulture capitalists.

[2legged@mastodon.ie]

@ChrisMayLA6 This is what privatisation really looks like. Steady revenue streams, no competition, statutory guarantees of a market, bugger all quality control

It's easy money, and it's big money.

[annehargreaves@ioc.exchange]

@ChrisMayLA6 Ah, interesting. I went down this rabbit hole a couple of days ago via a new SEND school being set up locally. This led to a multi-school & fostering org called Compass. Look behind Compass & find a PE called Granite who seem to have sold to another one called Cap10. Separately, a number of smallish independent schools have also been bought. Thanks for the tip - I'll go & see if I can get hold of the Observer.

[terrybtwo@ohai.social]

@ChrisMayLA6 This sounds very similar to the education sector, where commercial interests have dug in deep, (under the radar), by taking control of exam boards they sell highly profitable curriculum materials etc. And PFI.
The common core is that in both sectors there’s a tiny pot of cash per kid, but with a lot of kids in the system that means a lot of cash to siphon off.

[capnthommo@c.im]

@TerryBTwo @ChrisMayLA6 yes. This slavish adherence to the bizarre notion that in all cases private equals better will be the destruction of us all. However keen they may be to provide the service their main focus will always be on profit first and foremost.

[punissuer@universeodon.com]

@ChrisMayLA6 it's always the same game :/
https://pluralistic.net/2022/11/17/the-doctor-will-fleece-you-now/

[energisch_@troet.cafe]

@ChrisMayLA6 and simply because poverty stricken people don't have the money to fight injustices in courts

[the_wub@mastodon.social]

@ChrisMayLA6 There is a long running debate about private day care provision here in Norway.

There are strict rules about how much private owners can take out of the business as a private day care is supposed to be non-profit.

It has lead to a few cases in recent years where private day care owners went a bit too far with creative accounting sometimes taking out quite large sums out of their business.

Which was against the rules.

[onepict@chaos.social]

@ChrisMayLA6 I'm reminded of Oliver Twist and Jane Eyre again.

[anguadelphine@mk.absturztau.be]

@ChrisMayLA6@zirk.us

I think the better question is: How & Why is anyone surprised this is happening?

There are answers, sadly they cost money that government can't afford, less than the private sector charges anyway.

See also "Adult Social Care" and what REALLY happens if you dare challenge the bastards.

[chrismayla6@zirk.us]

@the_wub

Thanks, very interesting - boosted

[inchulk@mastodon.green]

@ChrisMayLA6 Well, doctor and veterinary practices, funeral directors and other essential services have been (or are being) bought up for future high profits. This is a natural extension I suppose.

[growfediverse@dillyofapickle.com]

@ChrisMayLA6 I dunno man, the reason why a bunch of wealthy VCs want a souce of both vulnerable kids and private property is probably detailed in the Epstein files

[alantperry@mstdn.ca]

@ChrisMayLA6

Same story with long term care facilities in Canada, where residents had worse experience (higher death rates) in private vs public facilities during Covid.

Plus, apparently there's some land speculation going on, where facilities are closed and sold to developers for a tidy profit.

[ghostonthehalfshell@masto.ai]

@ChrisMayLA6

I would use stronger terminology here it’s profiteering off of child abuse. You could be more blunt and also say child trafficking, because that’s what it will definitely become when privatized

[jqmcd@sfba.social]

@ChrisMayLA6 …let me tell you a story about elder care in America…

[lp0_on_fire@social.linux.pizza]

@wood5y @ChrisMayLA6, that “capitalists” needs an ‘r’.

[budududuroiu@hachyderm.io]

@ChrisMayLA6 aren't most UK pensions invested in firms like BlackRock? Seems like an ouroboros situation

[sfwmson@universeodon.com]

@ChrisMayLA6

Isn't anyone ofver there studyuing the US?

Oh. Never mind...they are and taking the very worst ideas we've ever invented, from private equity to filling cheaply made food with crap to make it more profitable.