PE Ownership and Bankruptcy Link Strengthens in Healthcare, Retail for 2024

Companies in these sectors with private equity backing were far more likely to go bankrupt than their non-PE-backed counterparts, according to new research.

The relationship between private equity ownership and the likelihood of bankruptcy for a company has been the source of intrigue for many years. In many ways, the relationship was misunderstood in the era succeeding the Global Financial Crisis, with critics pointing to pre-GFC practices (and data) as evidence for private equity companies’ ill intentions with their portcos.