Private Equity Titans on Wall Street Grapple with Soaring Debt Expenses

Wall Street's private equity industry, which experienced a decade-long boom, is now facing challenges as rising interest rates disrupt their debt-laden business model. In addition, regulators are scrutinizing private equity practices as anticompetitive and antisocial. The industry's biggest players, such as Carlyle Group and KKR, have seen declines in distributable earnings. Private equity firms have also faced criticism for their impact on various industries, including higher education, nursing homes, and hospitals, where their efficiency-focused tactics have been detrimental to consumers and vulnerable populations. The industry's opaque nature and financial contortions have allowed them to hide these troubles, but as interest rates remain high, the struggles are becoming more apparent.