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LOCAL COLUMN

OPINION: Private equity is reshaping life in New Mexico

Published

Across New Mexico, something is quietly reshaping the systems we rely on every day; where we live, how we access care, and how we make ends meet.

It’s not a coincidence. It’s a business model. It’s intentional and pervasive.

Private equity firms are moving into essential services across our state — housing, healthcare, childcare, utilities, veterinary care — because these are the places people can’t just walk away from. And their strategy is simple.

Buy. Strip. Flip.

Buy up the asset.

Strip it for parts — cut costs, reduce staffing, extract as much profit as possible.

Then flip it, turn it into something unrecognizable before the long-term consequences catch up.

That model might generate fast returns. But for New Mexicans, it’s creating long-term harm.

When private equity moves into housing, rents and fees go up with no explanation and less care for the property. People are left paying more for less, with fewer protections and less stability.

When it moves into childcare, costs rise, providers are stretched thinner and quality goes down. This undermines the value of care kids receive during critical years of development, and the investments our state has made in universal childcare. 

When it moves into utilities and other essential infrastructure, decisions get made in boardrooms far from our communities, with profits prioritized over affordability and reliability. Families can’t simply opt out of their utilities, making these takeovers especially unfair to New Mexicans.

And yes, we’ve seen this play out in healthcare too. From hospitals to nursing homes, cutting staff and squeezing services can have devastating and deadly consequences.

But the throughline isn’t any one sector. It’s the model itself.

Private equity firms are not designed to build systems that last. They are designed to generate returns on a short timeline. That means extracting value now, even if it weakens the foundation for everyone else later.

In a state like New Mexico, where so many families are already navigating economic pressure, that approach hits harder.

It means higher costs where people can least afford them.

Fewer workers doing more with less.

And critical services are becoming less reliable, less accessible, and less accountable.

This isn’t about one bad actor or one industry. It’s about a pattern that is accelerating, largely out of public view and with little accountability.

And it raises a fundamental question for all of us: What should be off-limits to a buy, strip, flip business model?

Should housing — a basic human necessity — be treated as a short-term investment?

Should childcare — something working parents depend on every day — be squeezed for maximum return?

Should the systems that keep our communities functioning be reshaped by firms whose primary obligation is to out-of-state investors?

In New Mexico, we pride ourselves on looking out for one another. On building communities where people, not profit margins, come first.

That means setting boundaries.

It means demanding transparency about who owns the services we rely on. It means holding corporations accountable for the impacts of their decisions.

And it means creating policies that protect New Mexicans from being caught in a cycle of extraction.

Because when essential services become investment strategies, the outcome is predictable: Costs go up. Quality goes down. And communities are left to pick up the pieces.

We can choose a different path where the systems we all depend on are built to serve people, not just generate profit.

But only if we’re willing to name what’s happening and act on it.

Johana Bencomo is the executive director of New Mexico Safety Over Profit and a Las Cruces city councilor.