Private Equity Backed Firms Face Cash Struggles, Moody’s Says

Private equity backed firms will struggle to find additional cash in the wake of the Trump administration’s sweeping tariffs, according to Moody’s Ratings.

About 14% of the companies rated speculative grade have liquidity that Moody’s would classify as “fairly weak,” according to the report. By comparison, only 3.6% of non-private equity firms are at that level.

Private equity sponsors will face difficulties supporting and exiting their investments as trade tensions erode business confidence and delay investment, the firm said. Many of the companies are facing cash flow pressure because their leveraged buyouts took place in 2021 and 2022, when rates ...