PE-in-trades model strained by rising interest rates and variable debt

Commentary that the PE model depended on suppressed interest rates; with 10-year treasuries elevated, variable-rate deal debt is repricing higher, making leveraged trade deals much harder to do and to service.

“this is an issue for private equity firms having to, having variable debt, which is repricing, which is suddenly much more expensive to service. It's making a lot of these deals much more difficult.”

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