Private equity collapse coming

[rogermunibond]

Interesting twitter thread on PE jam up.  Depending on how PE firms try to exit their private company investments could be an interesting playing field for WEB and GA.

 

https://threadreaderapp.com/thread/1970293827710886100.html

[rogermunibond]

Bloomberg article covers more of the same points.

 

https://archive.ph/LnA2h

[xboojum]

It's not the same but it rhymes: https://www.ft.com/content/cdb5ad3e-1c11-48af-9852-00ccc147abbf (subprime auto lender Tricolor blew up, and now it looks like debt-fueled auto parts rollup First Brands is going to have to file Chapter 11 after dodgy accounting). See also https://www.bloomberg.com/news/articles/2025-09-17/tricolor-bankruptcy-subprime-auto-lender-s-collapse-fuels-asset-fight:
 

Quote

Banks are exploring whether the same collateral was pledged to multiple lenders, while Fifth Third said last week that it believes the so-called master loan tape — the files that list key information like outstanding balances, credit scores and vehicle types — was “corrupted.” People familiar with the probes say the suspected manipulation stretches back months, possibly longer. The final answers will go a long way in determining not just how much creditors will recover of the billions they’re collectively owed, but also which of them get paid first.... Fifth Third has said it faces an impairment charge of as much as $200 million. JPMorgan and Barclays Plc have similar exposure. Prices on the $217 million of asset-backed securities Tricolor just sold in June — part of the almost $2 billion it’s issued since 2022 — have cratered over the past week. Some lower-ranking tranches, which take losses first if cash runs short, now fetch as little as 12 cents on the dollar, according to Trace pricing, down from more than 100 cents at the start of the month.