Private equity faces $300 billion debt wall as EQT acquires Qiagen

The private equity industry is approaching a significant debt maturity wall, with approximately $300 billion in loans set to expire during 2028 and 2029. According to data from PitchBook cited by the Wall Street Journal, this includes $140 billion in low-credit loans maturing in 2028 and an additional $160 billion the following year. This represents a sharp increase compared to the average of $60 billion maturing every two years between 2023 and 2025.

Much of this debt originated during the 2021 pandemic era when low interest rates fueled record mega-deals. Many of these acquisitions were financed with seven-year loans, predicated on the assumption that funds could exit their investments within that timeframe. However, rising interest rates since 2022 have made refinancing more expensive and selling companies for a profit more difficult. Software companies are particularly exposed, accounting for about one-third of the maturing debt.

In a related development in the private equity sector, Swedish firm EQT has reached an agreement to acquire the Dutch diagnostics giant Qiagen. The deal values Qiagen at approximately 10.8 billion euros, including net debt. EQT intends to take the molecular diagnostics company private, delisting it from the Frankfurt and New York stock exchanges. The acquisition, which is expected to close in mid-2027 pending regulatory and shareholder approval, aims to facilitate long-term investment and growth for Qiagen’s research and development operations.