Private equity research has a significant blind spot. When studying PE-owned companies, researchers typically track operating entities rather than the consolidated acquisition vehicles through which PE firms actually control their portfolios. This methodological error leads to dramatic underestimation of both the positive effects (faster growth) and negative consequences (higher leverage, steeper profitability declines) of PE ownership.

Great Rock Capital expands leverage facility to over $700M, adding new lending partners to support middle market lending growth.

Private debt offers mathematical resilience to recession through high interest income offsetting temporary markdowns, but leverage amplifies initial pain. RetryClaude can make mistakes. Please double-check responses.