Graham Bippart
Investors predict there’s a coming wave of zombie funds in PE. Will they be overrun or face them head on?
Institutional investors in North America were mostly overallocated to PE last year, according to Buyouts data. But portfolio value declines helped drive a plurality of them into underallocation.
We'll consider candidates from all aspects of PE, including dealmaking, fundraising, value creation and more. The deadline is February 13.
We would do well not to plod, zombie-like, into a repetition of yesterday’s mistakes.
The population of zombie funds is huge, and likely growing. Detecting early warning signs is the key to value preservation.
Research provided to Buyouts by TREO indicates the global volume of AUM of tail-end funds, or TEFs, hit $829bn in 2024, up 24% from 2023.
Many managers will continue to raise continuation vehicles, but others are taking more drastic action to escape the inertia of a stalled market.
Early results from an ILPA survey suggest LPs are ready to draw a line in the sand when it comes to investing with managers chasing retail capital.
The pain caused by compounding uncertainty will likely catalyze another stream of secondaries, which LPs say they’re clamoring for.
The PE industry’s plucky roots fed its growth into an established industry with a famed reputation. But which part of that story is the one individual investors want to buy into?