Lofty Valuations and High Debt Come Back to Bite Software Companies
Nearly $17 billion of software-related debt was in trouble as of mid-December
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Welcome to The Brink. I’m Reshmi Basu in New York, where I’ve looked at the growing pile of over-indebted software companies under stress. We also have news on troubled SPACs and on the latest Korean real estate scare. Follow this link to subscribe. Send us feedback and tips at debtnews@bloomberg.net or DM on X to @lcasiraghi.
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Software companies — long favored by private equity for their reliable cash flows and stable businesses — are entering 2024 with one of the biggest piles of distressed debt in the US.