Private Equity: Risks and Resilience

This chapter examines the Dallas-based retailer's shift to creditor control to alleviate $4 billion in debt, critiquing the high leverage of private equity firms. It assesses the industry's influence over corporate America, particularly in crises, while contrasting its performance with other investment vehicles during economic downturns. Furthermore, the chapter highlights the challenges and opportunities faced by private equity in both the U.S. and Europe amidst evolving market conditions.