Half Of All Nonfinancial Firms That Defaulted Last Year Were Backed By Private Equity: CJR
Ryan Chittum writes that companies backed by private equity firms have disproportionately high default rates because:
"...they levered up their acquisitions with cheap debt to goose their returns, and now these companies, who employ (or employed) lots of people, can't meet their debt service, much less invest in the business. That's helping choke the economy.
This raises a critical point about private equity: Why isn't that industry being included in financial reform? What about Blackstone?"