The biggest private equity groups are sitting on a $400bn debt mountain that must be repaid over the next five years, casting doubt over the future of some of the largest buy-out deals. Buyout firms raised large amounts of bank debt to buy companies between 2005 and 2007. They face more than $21bn of debt maturities in the next two years, another $50bn in 2012, $115bn in 2013 and $192bn in 2014, according to S&P LCD. Many groups are now seeking new ways to pay down this debt ahead of schedule.
