US Private Equity Sits on 13,500 Unsold Companies as High Rates Threaten More Bankruptcies
Updated
Updated · The Guardian · Sep 4
US Private Equity Sits on 13,500 Unsold Companies as High Rates Threaten More Bankruptcies
1 articles · Updated · The Guardian · Sep 4
Summary
A record 13,500-plus companies are stuck in US private-equity portfolios, with 2,563 in consumer businesses and 1,536 in healthcare, as firms struggle to sell assets at desired prices.
Persistently high interest rates and richer buyout valuations are squeezing the model: PE-owned companies typically carry debt near 50% of enterprise value, while healthcare deal multiples have risen from about 11 times EBITDA to 18 times or more.
That pressure is already surfacing in failures such as Saks, Eddie Bauer and Steward Health Care, and watchdog data says PE-backed companies made up the lion’s share of large corporate bankruptcies in 2025 and the first half of 2026.
The fallout reaches workers and communities because PE-owned businesses employ more than 13 million Americans and include thousands of healthcare facilities, with rural hospitals seen as especially vulnerable as Medicaid and ACA tax-credit cuts bite.
Washington and states are weighing tougher oversight—from limits on PE in housing and healthcare to tax and profit-taking rules—though analysts say the strongest near-term action is likely to come at the state level.