Surging Bankruptcies Among Private Equity Portfolio Companies Raise Concerns
Bankruptcy filings by U.S. private equity portfolio companies reached a record high in 2024, predominantly affecting the consumer discretionary and healthcare sectors. According to S&P Global Market Intelligence data, these surges in restructurings reflect lingering effects from pandemic-era disruptions, including shifting consumer spending and ongoing labor shortages.
Investors should take note of these developments, as they highlight risks within the private equity landscape. Understanding these vulnerabilities will be paramount for evaluating future investment opportunities and potential market impacts. Navigating this evolving situation requires careful analysis and foresight.