New York mayor-elect Zohran Mamdani has appointed former Federal Trade Commission (FTC) chair Lina Khan to his transition team, a move experts say serves as a warning to private equity firms in the state. Khan, known for aggressively targeting private equity roll-ups—the practice of acquiring small local firms and merging them into larger entities—signals a tougher stance on monopolistic practices that have raised rents and healthcare costs.
Private equity roll-ups have been linked to higher prices and lower quality in industries like healthcare and real estate. In New York City, firms have used tactics to force tenants out of rent-controlled buildings to raise rents. Martin Kenney, a professor at the University of California, Davis, noted that Khan's appointment is 'a signal' to private equity, reflecting a new populist approach among younger Democrats like Mamdani.
During her tenure at the FTC, Khan investigated roll-ups in healthcare and real estate, including mobile home parks and medical practices. While she did not win all cases, her scrutiny made firms more cautious. Loren Adler of the Brookings Institution noted that municipal power is limited, but Mamdani could force transparency, requiring private equity-backed health companies to disclose acquisitions.
Mamdani's campaign focused on affordable rent, and Kenney believes Khan's role is most directed at private equity landlords. The transition team will advise on running the municipal cabinet, with Khan's presence seen as a symbolic but significant step toward curbing monopolistic practices in New York.
