Private equity firms are sitting on more than $860 billion in buyout assets in funds at least 7 years old, as thousands of portfolio companies linger beyond traditional exit windows, trapping capital for sponsors and investors.
The problem is particularly acute in sectors that attracted heavy investment during the private equity boom of 2018 through 2022, when cheap debt and lofty valuations fueled aggressive dealmaking, according to a recent report from PitchBook.
