Behind the Money $12bn of debt: How First Brands Group collapsed
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Oct 29, 2025 
In this insightful discussion, Robert Smith and Ortenca Aliaj, both Financial Times editors, unravel the shocking collapse of First Brands Group, a small auto parts supplier with a staggering $12 billion in hidden debt. They explore the opaque financing tactics that obscured financial risks and discuss the lack of due diligence by lenders. From Patrick James's mysterious background to the broader implications for private credit, they raise critical concerns about the future of funding practices in a post-2008 financial landscape.
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Serial Acquirer Built The Group
- Patrick James built First Brands by buying many auto parts companies and financing them with repeated debt raises.
- He rebranded to First Brands Group in 2020 after consolidating those acquisitions into a single business.
Private Credit Filled The Post‑2008 Lending Gap
- Private credit grew as banks pulled back after 2008, filling a lending gap for highly leveraged mid-size firms.
- This created more lenient scrutiny and a ready pool of lenders for deals like First Brands.
Founder Lived Lavishly Amid Opacity
- Patrick James accumulated a lavish lifestyle with oceanfront homes and a large Ohio compound as First Brands peaked.
- Lenders and reporters found little public information about his past despite his ownership of the company.