Debt to EBITDA ratios are crucial in determining the structure and success of private equity deals, influencing both the velocity and size of transactions. Over the past 25 years, these ratios have shifted from loose lending practices to a more conservative approach, with current leverage levels reflecting a reset in the market due to rising rates and tighter lending conditions. As private equity firms adapt, they are learning to navigate a landscape with stricter terms and an increased reliance on equity funding.