Private Equity Groups Face Challenges as Unsold Companies Reach Record High

Private equity groups worldwide are facing a crunch as the number of unsold companies reaches a record high of $3tn. The industry's significant growth over the past decade is now hindered by a slowdown in dealmaking, compounded by higher interest rates. The report from Bain & Co highlights the challenges faced by private equity investors, predicting a potential delay of two to three years before investors see returns. The declining value of sold companies and the difficulty in finding buyers have prompted alternative money-raising tactics, such as net asset value financing and transferring companies to new internal funds. However, this has led to increased scrutiny from investors. Despite the challenges, the secondary market and certain initial public offering exits show promise for private equity groups.