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When an entity buys a business (majority ownership) it can do whatever it pleases to do. Outcries and discussions about fees they charge and other things they allegedly do is completely illogical. This article is unbelievable hopeless.

People have to understand that a 'PE' fund and also other alternatives like a 'hedge fund' is simply a private partnership / specific legal vehicle. The term 'Private Equity' and 'Hedge fund' does not even exist in legal terms, it is market jargon. Not only will there never be any regulation but there can't be any. You can't just regulate a certain field of activity that operates solely in the legal world. The private partnership has an agreement to acquire companies, but it could also be about anything else! Giving the fund enough freedom to buy companies, buy land, buy art etc.

A PE fund and a hedge fund are NOT REGULATED by the SEC, they are REGISTERED with the SEC. Their filings are also never checked for correctness, thus only accredited investors (wealthy - e.g. income above 200K) are allowed under law to invest in such private entities if the fund markets itself!

You can not regulate a private investment vehicle in a country takes certain economic and free-market principles and incentives halfway serious. And if the public goes on the nerve of these management companies they just rebrand 'Private equity' to something else.

And don't forget, they OWN the portfolio company. There is no serious argument for regulation that prohibits a legit owner of a company to do a certain activity.