Private Equity’s Significant Debt Problem Has Been Building For Years

The warning signs have been accumulating for years. Private equity firms have acquired companies with heavy borrowing. Lenders have extended credit to increasingly leveraged businesses, while some borrowers have relied on refinancing, debt extensions and payment-in-kind interest to manage their obligations. Now hundreds of billions of dollars in loans to private equity-backed companies are coming due, sharpening those longstanding concerns. READ MORE