Private Equity Debt Burden Leads to Security Failures and Client Losses at Ivanti Inc.

Ivanti Inc. lost critical U.S. government contracts, including the Pentagon and NASA, following repeated Chinese state-sponsored cyberattacks linked to cost-cutting by its private equity owners. Burdened by $2.8 billion in debt, the firm saw its customer base shrink by nearly one-third to 34,000 by February 2025. Revenue declined from $950 million in 2023 to $906 million in 2024, while annual interest payments rose to roughly $290 million. In May 2025, the company executed a distressed debt exchange, increasing total debt to $3.1 billion and extending maturities to 2029 to avoid bankruptcy.