Private-Equity Deals Hit Financial Snags

The private-equity investment well may be drying up, making financing for large purchases, such as Cerberus Capital Management LP’s $20 billion deal for Chrysler Group more difficult to swing, industry analysts say.

If the trend continues, it could prove harmful to the U.S. Big Three, as well as their debt-ridden suppliers, which are relying on private equity low-interest loans to bankroll their ...