The growth of the private equity in recent years has raised concerns about its consequences. This column matches 2.5 million workers who were employed by 3,600 firms in the US that underwent leveraged buyouts with workers at firms that were not acquired to explore the effects of private equity on labour market outcomes. The authors find that unemployment for workers at bought-out firms rises and wages fall substantially after buyouts, with wage losses concentrated among those who leave the bought-out firm. These dynamics appear to be the result of private equity acting to increase efficiency rather than exploiting labour market power.