Good morning. It's Thursday, Feb. 26, and welcome to this week's Business & Finance newsletter. This week, we're covering private equity, dollar stores, and deflation. If you have any feedback for us, don't hesitate to reply to this email and let us know.
As always, thank you for being a reader!
—Phoebe Bain, 1440 Business & Finance Section Editor
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Private equity 101
Private equity firms typically purchase mature businesses with the aim of exiting at a profit by reselling them or taking them public. When a private equity firm buys a company, it takes full or majority control of the business, influencing its finances and operations in order to eliminate inefficiencies, grow revenues, expand into new products and markets, acquire complementary businesses, and more.
PE investments are typically reserved for institutional investors such as sovereign wealth funds, university endowments, pensions, and high-net-worth individuals. For these investors, PE is a valuable diversification strategy that can yield hefty returns. Private equity is considered an alternative investment—it's less liquid than traditional assets like stocks and bonds.
PE firms often borrow heavily to finance acquisitions, using the target company's assets as collateral to minimize the firm's upfront investment and risk while maximizing potential returns. They operate under a "two and twenty" structure, in which the firm's investors (or "limited partners") pay its roughly 2% annual management fee while the fund's managers take 20% of the fund's overall profits (called "carried interest"), with the rest going to investors.
Despite nearly 20 years of strong returns, private equity fundraising decreased in 2025 and 2024. In 2025, global private equity raised $408B, down 33% from the $609B raised in 2024.
Explore everything else we've found on Private Equity.
Also, check out ...
> KKR was the world's largest private equity firm as of 2025. (View)
> How billionaires plan to invest in 2026. (View)
> Why PE spent more than $200B buying British companies between 2016 and 2023. (Watch)
> Why has private equity grown so much? (Listen) |
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Out With The Old, In With The Apple |
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It’s 2026. Our cars are driving themselves, our computers are making their own videos, and our dogs have finally mastered the art of the self-service water bowl (okay, that one’s a stretch). So why do you still have a credit card that feels like it belongs in 1995?
Unlike other credit cards, Apple Card estimates how much interest you’ll owe with a payment wheel and suggests an amount to help you pay off your balance faster. Add to that no fees whatsoever (annual, foreign transaction, late, or otherwise), the ability to earn unlimited Daily Cash back on every purchase, and a high-yield Savings account available through Apple Card, and you have a credit card that supports your financial health. Imagine that.
See your Apple Card credit limit offer right now.
Terms apply. Savings provided by Goldman Sachs Bank USA. Member FDIC. |
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Dollar stores, explained
Dollar stores are retailers once known for selling a wide range of household goods for one dollar or less—although in recent years, inflation and rising costs have forced many dollar store chains to use multiprice formats, including some as high as $7. Today, it would be more accurate to call Dollar Tree, for instance, a $1.25 store.
Dollar stores emerged in the mid-20th century, when postwar America was increasingly producing cheap consumer goods. The concept drew on "five and dime" stores, where items were either 5 or 10 cents a piece, as well as retail promotions at other retailers known as "dollar days."
With more than 40,000 stores in the US, the dollar and variety store industry was worth about $119.8B in revenue as of early 2026. These businesses make money by purchasing inventory in bulk, then selling it at a markup. The top dollar store retailers by market share include Dollar Tree, Dollar General, and Family Dollar.
Explore everything else we've found on Dollar Stores.
Also, check out ...
> Why dollar stores place staple items near the back of the store. (Watch)
> Family Dollar and Dollar Tree merged in 2015 before splitting in 2025. (Listen)
> Products sold at dollar stores tend to be smaller in size—here's why. (Read)
> The worst products to buy at dollar stores, according to a financial expert. (Read) |
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What is deflation?
The opposite of inflation, deflation occurs when an economy experiences a sustained decline in the price of goods and services. While deflation can sound like a good thing, it can actually be worse than inflation, as consumers may become accustomed to lower prices and feel less inclined to spend money on items that might be cheaper the next day.
Economists identify deflation by examining negative inflation rates using tools like the Consumer Price Index. Shocks to either supply or demand can reduce consumer demand overall, leading to deflation. For instance, when consumer demand is low, it can mean people have less money to spend.
Deflation can also be particularly harmful to people borrowing money, because it increases the real value of their debt and makes it more expensive to repay.
Economists are wary of deflation in part because recessions have historically accompanied it: The United States last experienced a period of deflation during the Great Recession.
Explore everything else we've found on Deflation.
Also, check out ...
> Falling demand and lower costs of production can cause deflation. (View)
> Inflation was a word before deflation was. (Read)
> What is quantitative easing? (Watch)
> Switzerland's currency is so strong that it could cause deflation. (Read) |
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One Story We're Taking Stock In |
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A viral report from Citrini Research envisioning a doomsday scenario caused by AI not only went viral this week, but also added to investor angst about AI in general: The US software shares index is down 24% so far this year, according to the below report from Reuters.
The lengthy Citrini Research piece depicts a 2028 scenario in which unemployment rises to 10.2%, triggered by layoffs in the white collar workforce due to AI's rapid erasure of software and delivery applications. Critics accused the Citrini article of fear-mongering and overlooking AI's positive impacts on the global economy. |
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> Skittish investors spooked as dystopian AI outlooks go viral. (Read) |
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> Read the full Citrini piece, titled "The 2028 Global Intelligence Crisis." (Read) |
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Your Credit Card Has Competition |
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It may feel dramatic, but if you’re still holding onto the same credit card from a decade ago with less-than-stellar perks (and large fees), it’s time to think about upgrading to the Apple Card.
Apple Card is all about helping you lead a healthier financial life – that means intuitive tools, no fees of any kind, great perks like Daily Cash back, and even a high-yield Savings account available through Apple Card so your money can make you more money. When you put it that way, it’s a wonder we didn’t ditch our current card years ago. Apply for Apple Card here to see your credit limit offer upfront.
Terms apply. Savings provided by Goldman Sachs Bank USA. Member FDIC. |
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