Private-equity firms might want to start lawyering up. If Democrats take the House or Senate in the 2026 midterms, the industry's growing ownership across the U.S. economy, including companies riding the artificial intelligence wave, could become a favorite target for congressional investigators.
A Democratic takeover of one or both chambers would shine a brighter spotlight on private equity's expanding influence, data center investments, and the industry's relationships with the Trump administration. That could open the door to a new wave of congressional investigations.
Kristina Moore, a partner at law firm Womble Bond Dickinson and a former congressional investigator with 14 years of experience on Capitol Hill, said private equity's growing presence throughout the economy could become a bipartisan oversight issue if Democrats regain control of Congress.
“Algorithmic pricing keeps coming up as being a popular topic for bipartisan concern, as well as the dominance of private equity ownership throughout the economy,” Moore said during a recent episode of the “Womble Perspectives” podcast.
Private Equity's Expanding Footprint Could Draw Scrutiny
Private equity's growing ownership across industries could give lawmakers a broader range of companies and business practices to examine.
Data centers are one area likely to attract attention, particularly as investors pour billions of dollars into infrastructure supporting the artificial intelligence boom.
“Data centers — anybody in that space should expect scrutiny,” Moore said.
The potential investigations come as private-equity firms and infrastructure investors expand their exposure to data centers, power infrastructure, and other businesses benefiting from surging demand for AI computing capacity.
Moore said companies do not necessarily need to be accused of wrongdoing to become part of a congressional investigation. Businesses may simply possess communications, financial records, or other documents that lawmakers believe could help explain the conduct they are investigating.
White House Ties Could Create Additional Risks
Another potential complication involves disputes over executive privilege, particularly for businesses and executives that have communicated with the Trump administration.
Moore pointed to a recent Department of Justice Office of Legal Counsel opinion that expanded the potential scope of executive privilege to cover certain confidential communications involving private advisers who communicate with or reflect the president's words.
The distinction could create uncertainty for companies whose executives have had discussions with the White House. Businesses could face competing demands from an administration seeking to protect certain communications and congressional investigators attempting to obtain those same records.
Moore said she would not be surprised if Congress challenges some of the administration's broader privilege claims and attempts to compel information lawmakers consider relevant to an investigation.
For private-equity firms, the potential scrutiny could extend beyond their own operations to the portfolio companies they control, particularly in industries attracting significant political and economic attention.
