When private equity-backed companies stumble, it's not just Wall Street that feels the pain. Everyday Americans could soon find it harder and more expensive to get a mortgage, car loan or small business credit line. Private equity defaults rose 80% in the second quarter of 2025 , with 21 companies defaulting on more than $27 billion of debt, up from 15 companies defaulting on roughly $15 billion of debt in the previous quarter, according to Moody’s Ratings. The spike in PE defaults was driven by a deterio ...