Private equity payouts fell 50% short in 2024

Private equity funds have struggled to meet investor expectations, with payouts falling short for the third consecutive year due to a deal drought. Cambridge Associates estimated a $400bn shortfall in payments over the past three years, prompting firms to explore new ways to return cash to investors. While there is optimism for increased merger and acquisition activity in 2025, concerns remain about the industry’s ability to sell assets at realistic valuations, with some assets being over-marked and stuck.

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