Private equity firms and their investors have increased their investments in the prison industry in recent years, with a catastrophic impact. In acquiring these companies and their competitors to increase their own profits, private equity firms have significantly manipulated the landscape of the prison industry. They have consolidated the correctional telecom, healthcare, and commissary markets, among others, leading to considerable monopoly concerns.

Private equity firms use capital from pension funds, foundations, university endowments, and other institutional investors to “flip” private companies much like a contractor flips properties. After buying a company, a private equity firm will spend 4-6 years acquiring its competitors and increasing profitability before selling the company for a large profit.

And unlike public companies traded on the stock market, private companies are typically shielded from public scrutiny and oversight, but their institutional investors still create vulnerabilities and pressure points.

This tangled web of investments means there is a good chance you’re invested in the prison industry without even knowing it.