B

Baroness Bennett of Manor Castle (GP)

Speaking in the House of Lords on 10 June 2025

Debate

Corporate Liquidations

Contribution

My Lords, several of the corporate collapses that the Minister referred to earlier were associated with private equity ownership and high levels of debt. Moody’s reports that default rates have been twice as high for private equity-owned firms as for others. The Financial Times leading article on 6 June noted that, with exit activity from private equity funds slumping to a historically low level, some private equity firms “are resorting to … risky … methods of generating liquidity”. Are the Government concerned about private equity’s impact through these means on both the real economy and financial stability?

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