Who Really Owns Your Vet, Nursery, and Supermarket?

A new investigation by The Guardian has found that as many as one in eight workers in Britain is employed by a company controlled by a private equity firm. Private equity firms raise large sums of money from investors and banks to buy businesses, run them, and sell them for a profit. This means these powerful investment groups have a hand in many services that families use every day — from nurseries and vets to supermarkets and care homes. The findings have sparked a debate about whether the UK needs stronger rules to protect people who rely on these services.

Supporters say the private equity model helps businesses grow and makes the economy stronger. But critics warn it can lead to heavy debt, rising prices, and services that get worse over time. Senior British economist Sir John Kay said the best version of private equity involves long-term investment in businesses. However, he said a more common practice is buying a company, pulling out large sums of money, and selling it within three to five years — which can leave businesses weaker.

Oxford professor Ludovic Phalippou pointed out that private equity fund managers are regulated as financial firms, but not as providers of essential services. He said if society would not accept a care home or children's service suddenly shutting down, then stricter rules about debt and financial backup plans may be needed. His concern is that the current rules do not fully protect everyday people. The industry group UK Private Capital, however, argues that private equity has invested nearly £150 billion in the UK over five years and drives innovation across the country.

More than one in three nursery workers in the UK works for a company controlled by private equity. The Education Secretary has asked the Competition and Markets Authority (CMA) to look into whether these investors are pushing up costs or making childcare less reliable for families. A previous investigation found that investment funds doubled their spending in the nursery sector between 2018 and 2022. Experts warned this could increase the chance of nurseries closing and would not help create more childcare spots in lower-income areas.

Just six large groups now own 60% of all vet clinics in the UK, and three of those are backed by private equity. A CMA investigation found that weak competition among vet clinics has led to high prices and more than £1 billion in extra costs for pet owners. Sir John Kay said he would prefer a vet motivated by care for animals rather than one focused on hitting financial targets. His comments suggest that profit-driven ownership can change how professionals do their jobs.

Two of Britain's biggest supermarkets — Morrisons and Asda — are both owned by private equity firms. Several high street brands that collapsed in recent years, including Toys R Us and Claire's, were also private equity-owned before they went under. Debenhams was left with more than £1 billion in debt after being bought by a group of private equity investors, and eventually closed all its physical stores. These cases have raised serious questions about whether private equity ownership makes businesses less stable.

Private equity also owns parts of the high street that many people might not expect. The bookshop chain Waterstones — which also owns Foyles, Blackwells, and Hatchards — is ultimately controlled by a private equity firm called Elliott Investment Management. Other well-known names like Boots and WH Smith have also been bought by private equity investors. Many British restaurant chains, including Pizza Express, Gails, and Wingstop, are private equity-controlled too.

More than a quarter of workers at arts venues work for a private equity-controlled company, with the biggest player being the theatre company ATG. Composer Andrew Lloyd Webber has criticised this trend, saying some investors only want to make money rather than invest in the art itself. About a third of people working in film and TV post-production in Britain also worked for a private equity-controlled company in 2024. This shows just how far the reach of these investment firms extends into the creative world.

Private equity firms also have a significant presence in social care, employing workers in care homes, nursing homes, and specialist residential services. The collapse of Four Seasons Health Care showed what can go wrong — it ran over 450 homes and cared for more than 20,000 elderly people before buckling under £1.5 billion in debt in 2019. Many vulnerable people had to be moved on short notice when it failed. Experts say this case is a warning about the risks of heavy debt in care services.

About 27% of petrol stations and one in five waste management workers are linked to private equity-backed companies. The CMA has had to intervene in the petrol sector to prevent monopolies and price rises. In waste, Biffa ran into serious financial trouble in 2012 after being loaded with over £1 billion in debt, and workers have gone on strike in recent years over low pay and safety concerns. The debate over private equity's role in essential services — and whether stronger rules are needed — is far from over.