It’s increasingly likely that the US economy could enter a recession in the next 18 months, according to PitchBook’s quantitative model. Meanwhile, PE buyout deals are starting to slow, and exits are declining to extents rarely seen in the past two decades.
As things stand, portfolio companies are using more cash flow than usual for interest payments, thus squeezing returns. But a full economic slowdown that could drag down interest rates would create thornier problems for PE investors.
PitchBook’s latest Quantitative Perspectives report tells the story of the macroeconomic factors and debt complications leading PE to pump the brakes. Read more.
