More Than $1 Trillion Is Stuck in ‘Zombie’ Private Equity Funds

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Private Equity

More Than $1 Trillion Is Stuck in ‘Zombie’ Private Equity Funds

institutionalinvestor

2 months ago

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The fastest growing corner of private equity isn’t secondaries, evergreens or continuation funds. It’s zombie funds.So-called zombie funds are those that are more than ten years old, have stopped making new investments and still hold portfolio companies they haven’t been able to sell without recognizing losses or sacrificing incentive fees. Meanwhile, GPs may continue collecting management fees on a net asset value that may be inflated.

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