Private Equity Bankruptcy Tracker

The Private Equity Bankruptcy Tracker reports that private equity firms were involved in 54% of the largest U.S. corporate bankruptcies (liabilities $\ge$ $1 billion) and 51% of large bankruptcies (liabilities $\ge$ $500 million) in 2025. The report argues that the private equity model, characterized by leveraged buyouts and aggressive value extraction, increases bankruptcy risks, particularly in the manufacturing, healthcare, and consumer discretionary sectors. These financial failures led to at least 36,802 layoffs across 13 PE-backed bankruptcies in 2025 and disrupted essential services, such as healthcare. The document also notes a trend toward 'distressed exchanges' to circumvent formal bankruptcy, with PE-backed firms accounting for 41% of these events according to S&P Global data.

• Private equity firms were significantly overrepresented in large U.S. corporate bankruptcies in 2025, playing a role in 54% of those with liabilities of $1 billion or more and 51% of those with liabilities of $500 million or more.
• While private equity accounts for 7% of the U.S. economy, these firms were involved in 10% of all corporate bankruptcies in 2025.
• Private equity-backed companies are heavily overrepresented in specific sectors: they accounted for 71.43% of the largest consumer discretionary bankruptcies and 60% of the largest manufacturing bankruptcies.
• Private equity-backed firms are increasingly using 'distressed exchanges'—out-of-court debt exchanges that avoid formal bankruptcy—accounting for 41% of such exchanges tracked by S&P Global in 2025.
• The human cost of these bankruptcies is high, with at least 36,802 layoffs occurring across just 13 private equity-backed bankruptcies in 2025, though this is likely an undercount.
• Private equity ownership in healthcare is particularly damaging, with PE-backed companies representing 44% of the largest healthcare bankruptcies in 2025, which can restrict access to essential care.
• The leveraged buyout strategy is identified as a primary driver of instability, as it saddles companies with debt that drains resources from innovation and workforce development to service interest payments.

APA

Private Equity Stakeholder Project (2026). Private Equity Bankruptcy Tracker. https://pestakeholder.org/reports/private-equity-bankruptcy-tracker/

Chicago

Private Equity Stakeholder Project. Private Equity Bankruptcy Tracker. 2026. https://pestakeholder.org/reports/private-equity-bankruptcy-tracker/.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=Private Equity Bankruptcy Tracker |date=20 February 2026 |url=https://pestakeholder.org/reports/private-equity-bankruptcy-tracker/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2026private, author = {{Private Equity Stakeholder Project}}, title = {{Private Equity Bankruptcy Tracker}}, institution = {Private Equity Stakeholder Project}, year = {2026}, month = feb, url = {https://pestakeholder.org/reports/private-equity-bankruptcy-tracker/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }