BusinessPhoto: Mint MarketsPrivate Equity Adds AI Disruption Clauses to Debt Agreements
Private equity firms are incorporating force majeure-style clauses in buyout loans to allow companies to pause addressing defaults caused by AI disruptions. H.I.G. Capital included such language in a €470 million loan for its majority stake in Terras Group, a German infrastructure firm. This new clause, appearing in at least two leveraged buyouts since September, offers more flexibility than traditional lender protections, reflecting growing concerns about AI's impact on business operations.
Mint Markets·


