The report cites high interest rates, tariff volatility under the current US administration, and broader geopolitical uncertainty as the primary factors stalling exits and compressing valuations. These dynamics have extended holding periods, with 30% of private equity-owned companies now held for more than five years, well beyond traditional fund timelines. Despite entering 2025 with expectations of a dealmaking resurgence, global M&A activity remains flat. By May, 4,535 transactions had been completed, totalling $567bn. Meanwhile, 30% of executives surveyed said they had paused or re-evaluated deals due to tariff concerns. PwC also reported that private equity firms currently manage around $3tn across 30,000 companies. With capital tied up longer than expected, firms are turning to innovative strategies, such as preferred equity, spin-outs, and targeted asset sales, to generate liquidity and meet return expectations. While cross-border dealmaking has fallen to 16.9% of activity '...
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