PE players in trades under pressure from variable debt repricing at higher rates

Finance leader Jawad argues many PE-backed trades players are in a tough spot because their variable debt is repricing at higher rates while exit liquidity is drying up, pushing them to cut prices to grab market share.

“a lot of these private equity players are in a tough spot. They have their debt, unlike most other debt that we're used to, is not fixed, it's variable debt. And it's repricing on these higher rates. And the liquidity sources where they could sell or kind of get an exit from this are drying up in many cases.”

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