Private Credit Reducing Chapter 11 Filings Among Private Equity-Backed Companies, Jake Adlerstein Tells S&P Global

Restructuring partner Jake Adlerstein spoke with S&P Global about factors that contributed to a decrease in bankruptcy filings among U.S. private equity-backed companies last year. In “U.S. Bankruptcy Filings Drop for Private Equity-Backed Companies in 2025,” published on January 6, Jake notes that increased capital availability, particularly through private credit, helped more distressed companies avoid Chapter 11 bankruptcy this past year. “You just have more liquidity out there that's available to help address issues that may have otherwise caused companies to file for Chapter 11," he says.

But continuing high interest rates, inflation and tariffs put additional pressure on companies that rely on consumer spending, resulting in more bankruptcies of private equity-backed companies in the consumer discretionary industry than in any other sector last year, Jake notes.

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