PYMNTS.com May 26, 2024
Private equity firms are reportedly holding onto a record 28,000 companies worth $3 trillion-plus.
It’s a situation outlined in a report Sunday (May 26) by the Financial Times (FT), which noted that the private equity (PE) sector’s difficulties in providing returns to clients is hurting hedge funds, which rely on those clients — pension plans, endowments, foundations — to raise money.
Hedge funds that want to raise money from institutional investors are being turned away, the report said, on the grounds that the institutions don’t have the cash to give them. This trouble, the FT adds, is due at least somewhat to a slowing in distributions that investors have received from PE funds.
Buyout-backed exits dropped to $345 billion...
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