“Private equity funds cashed in just half the value of the investments they typically sell in 2024, with payouts to investors shrinking for the third year in a row due to a deal drought.”, — write: epravda.com.ua
Private equity funds cashed in just half the value of the investments they typically sell in 2024, with payouts to investors shrinking for the third year in a row due to a deal drought. The Financial Times writes about it. Funds typically sell 20% of their investments in a year, but industry executives predict cash payouts for the year will be about half that figure. Over the past three years, funds have fallen about $400 billion short in payouts to their investors compared to historical averages, it said. .Advertisement: The data underscores growing pressure on companies to find ways to return money to investors, including by exiting investments next year. Firms have been scrambling to strike deals at attractive prices since early 2022, when rising interest rates have sent funding costs soaring and corporate valuations falling.