Private Equity Confronts Swollen Investment Backlogs With Dealmaking Stuck
- Miguel Virgen, PhD Student in Business
- Aug 21
- 5 min read
Private equity (PE) has long been an industry defined by rapid capital deployment, ambitious growth strategies, and timely exits. Yet, as 2025 unfolds, the landscape has shifted dramatically. A staggering $3.6 trillion worth of portfolio companies—spread across nearly 30,000 holdings remains unsold, creating a swollen backlog that threatens to disrupt the traditional private equity cycle. Dealmaking has ground to a near halt, distributions to investors have plummeted to their lowest levels in three years, and fundraising efforts face significant headwinds. The industry finds itself grappling with fundamental questions about valuation, liquidity, and the path forward.
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