How private equity tangled banks in a web of debt
Private equity firms like Blackstone, Apollo Global Management, and Carlyle Group have seen their assets quadruple to $8tn since 2012. The industry’s reliance on debt has grown alongside its size, fueled by low interest rates. Banks are heavily involved, lending to buyout-owned companies, funds, managers, and investors. Regulators are concerned about the potential risks this complex web of debt could pose to the global financial system.
