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Portfolio company bankruptcies jump

S&P Global Market Intelligence says bankruptcy court filings by private equity-owned portfolio companies have surged so far this year and are on track to more than double the number seen in 2021 and 2022, according to a report by the Wall Street Journal.

S&P Global Market Intelligence says bankruptcy court filings by private equity-owned portfolio companies have surged so far this year and are on track to more than double the number seen in 2021 and 2022, according to a report by the Wall Street Journal.

The increase, which coincides with an overall rise in US company bankruptcy filings, indicates that PE firms may be less willing to make new investments in struggling companies, S&P said in a new report.

A total of 16 PE portfolio companies filed for bankruptcy in the first 75 days of this year, according to S&P’s figures. If that rate continues, the total number of bankruptcies by the end of December will hit 78, the second-highest total in more than 12 years, behind only a global pandemic-triggered spike seen in 2020.

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