Skip to content

Private equity stuck with 33,575 unsold businesses

financeAug 10, 202631839

The New York Times reports that buyout firms are holding 33,575 portfolio companies they cannot sell at the prices their investors expect. Even amid a boom in deal-making, private equity firms are unable to exit a growing number of investments at required values, a dynamic the report says is pressuring investor returns and exit plans. The article notes U.S. private equity generated an annualized 6.4 percent return from 7/1/22 to 3/31/26, well below the S&P 500's 15.2 percent and the Nasdaq's 19.3 percent over the same period. That shortfall and the inventory of unsold assets have prompted critics to highlight worker layoffs, distressed businesses, and calls for policy changes; commentators point out that pensions and other large institutional investors are among private equity’s backers. Academic research cited in discussion, NBER working paper w29743, found private equity ownership of newspapers correlates with fewer reporters, reduced local-government coverage, and lower voter turnout. The buildup of unsold deals therefore complicates exit timing for major investors and strengthens arguments for tighter regulation of leveraged buyouts and other private equity practices.

daniel sieradski
@self.agency

private equity is destroying everything and must itself be destroyed

38545d ago
Beverly Tweetmaker
@bvrlytweetmaker.bsky.social

Have you noticed there are way more lawyer billboards and TV ads lately? Did you know that private equity—the people making the über-rich even richer while ruining everything for the rest of us—is behind it? Probably not, and that's how they want it. But we've got a chance to stop it. 🧵 (1/x)

3444d ago
1 source