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The future of classic private-equity buyouts under higher interest rates

Bloomberg Opinion’s Paul J Davies argues that higher-for-longer rates might spell the end of classic leveraged buyouts. He points to firms’ difficulty selling companies bought with cheap pre-pandemic debt.

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1 Source, 14h ago, first seen 14h ago

TLDR

Bloomberg Opinion’s Paul J Davies argues that higher-for-longer interest rates might end the era of classic private-equity leveraged buyouts. He says firms have struggled since 2023 to sell companies bought with ultra-cheap debt before the pandemic and have used financial engineering to keep some money moving.

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1 Source, first seen 14h ago

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Combined views

22.4K

1 Source, first seen 14h ago

7 likes4 comments3 saves2 reposts

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1 Source

@businessHigher-for-longer interest rates will obviously cause financial headaches. @pauljdavies says they might also herald the end of classic private-equity leveraged buyouts (via @opinion) https://www.bloomberg.com/opinion/articles/2026-09-30/the-end-of-private-equity-s-leveraged-buyout-era-is-nigh?taid=6abd1cee5be66d0001bc8447&utm_campaign=trueanthem&utm_content=business&utm_medium=social&utm_source=twitter
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    @businessHigher-for-longer interest rates will obviously cause financial headaches. @pauljdavies says they might also herald the end of classic private-equity leveraged buyouts (via @opinion) https://www.bloomberg.com/opinion/articles/2026-09-30/the-end-of-private-equity-s-leveraged-buyout-era-is-nigh?taid=6abd1cee5be66d0001bc8447&utm_campaign=trueanthem&utm_content=business&utm_medium=social&utm_source=twitter
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