Private equity firms are facing a backlog of thousands of aging portfolio companies bought during the low-rate era. U.S. PE exit value reached nearly $645 billion in 2025, more than double the 2023 trough, but the recovery is uneven and concentrated in larger deals. As of June 30, more than 13,500 U.S. companies were PE-owned, nearly half held for over five years, and the main obstacle is price, as sellers' valuations clash with buyers' higher financing costs. Sponsor-to-sponsor deals have made up about 45% of exits over the past decade, while cash distributions have stayed at or below 15% of NAV for four consecutive years. The article argues firms must now create value through operational improvements rather than cheap leverage and multiple expansion.
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SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 763.31 |
| Change that session | -1.10% |
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