Private Equity's Dark Side: A Warning Sign for Trump's Retirement Plans Private equity firms have long been touted as savvy investors who can unlock value in struggling companies.
However, new data from the Private Equity Stakeholder Project (PESP) paints a different picture – one of a sector riddled with debt and vulnerability to financial distress. In 2025, an alarming 54% of the biggest U. S.
bankruptcy filings were private equity backed companies. This is not just a numbers game; it's a red flag for the entire industry. With private equity firms controlling around 7% of the U. S.