The European Central Bank (ECB) is scrutinizing the private equity sector's risks, particularly focusing on banks' exposure to private equity investments. This comes as the private equity industry faces significant challenges, with major firms confronting a $50 billion reckoning due to their reliance on margin loans to boost returns. The ECB vets these risks as the industry also explores borrowing against its stock holdings to generate cash. The situation has prompted private equity and private credit funds to accelerate dealmaking efforts to return money to investors. Participants at the SuperReturn International conference in Berlin highlighted the increased pressure on these funds to manage their financial strategies amid the ongoing industry turmoil.