The fund managers don't have to beat the market in order to make bank. They can take advantage of the "carried interest" loophole, which has nothing to do with interest rates - it's a tax system that was invented for 16th century sea-captains (no, really):

https://pluralistic.net/2021/04/29/writers-must-be-paid/#carried-interest

2/

PE dresses up its playbook in all kinds of bullshit, but it's a smokescreen. At core, PE funds buy companies, merge them to monopoly, slash wages, fire staff, load up their businesses with debt, and then skedaddle before the businesses collapse. They call this "creating value":

https://pluralistic.net/2020/07/24/software-is-cake-too/#looters

3/

This playbook guarantees that everything PE touches will turn to shit. PE is a parasite that preys on weak industries and makes them even more dysfunctional. Think of how PE has cornered regional rental housing markets and then turned every rental in town into a slum:

https://pluralistic.net/2022/02/08/wall-street-landlords/#the-new-slumlords

4/

Most of us didn't really think about rail-freight until last winter, when the whole system nearly collapsed. Again, the bloody handprints of PE are all over that crisis:

https://pluralistic.net/2022/02/04/up-your-nose/#rail-barons

The pandemic put a lot of businesses into a precarious state, and PE swooped in, buying up distressed businesses at scale and putting them into a death-spiral:

https://pluralistic.net/2020/03/30/medtronic-stole-your-ventilator/#blackstone-kkr

5/