[fallingfrog]

Its a broad strokes overview but id love to see a deeper documentary exploring how this works. If the companies are taking on all this debt, which makes them subsequently implode, who is taking the losses on the loans and why are they still making those loans?

[gamblor956]

The lenders are taking the losses.

Because most businesses take out loans for legitimate reasons. Banks usually charged PE owned companies significantly higher rates for their loans to address the risk(used to work at a PE owned company and we paid 4x prevailing market rate) so PE firms go to great lengths to hide their ownership.

[tencentshill]

It seems like a lot of lenders should be sued for irresponsible investing then. How much interest can you charge when you get so little of the actual capital back? Is it 100% or more?

[pcald]

selection bias is why