A new law set to take effect Friday, July 10, that limits — for the first time — private equity purchases of single-family homes takes aim at a practice blamed for reducing the availability of affordable housing. It's the latest example of how political adversaries in Washington are unifying over concerns that buyout shops increasingly make investments that critics say can gut businesses, raise prices and harm consumers. The Biden administration treated many sponsors as pariahs, accusing them of chasing short-term profits and exploiting a loophole that allows smaller assets to be consolidated without antitrust review. Private equity acquisitions were subject to intense scrutiny, with some unwound.

Under Trump, federal enforcers relaxed oversight of PE firms, declining to single them out for special treatment as state attorneys general sought to restrict their investments, especially in healthcare. READ MORE