Private Equity Sees Distressed Debt Soar at Portfolio Firms
Distress in the portfolio companies of the top 50 PEs increased 18% since mid-March
Scott Kleinman of Apollo at the Milken Institute Global Conference in 2022.
Photographer: Lauren Justice/BloombergWelcome to The Brink. It’s Giulia Morpurgo, a reporter in London, where I’ve been looking at distress rising distress in private equity-owned companies. We also have the latest on the restructuring at Atos, Brazil’s InterCement and a copper miner’s bankruptcy. Follow this link to subscribe. Send us feedback and tips at debtnews@bloomberg.net or DM on X to @gmorpurgo.
Distressed debt in private equity-owned firms is soaring as interest rates remain stubbornly high, offering a glimpse at the pain ahead for the industry. Leaders bemoaned the grim outlook during a gathering in Berlin last week, with Apollo’s Scott Kleinman warning that lower returns are on the horizon.