PitchBook examines the buildup of “zombie” private equity assets—companies that remain solvent but lack exit paths—as higher rates and lower multiples expose aging vintages. Of 13,509 PE-backed companies, 33.8% have been held over five years, yet the authors frame the overhang as a growth inhibitor, not a systemic crisis.
Private Equity’s Zombie Problem
PitchBook
Kyle Walters, Harrison Waldock
Research
22 Pages
Key Takeaways
Aging assets accumulate: Of 13,509 US PE-backed companies, 33.8% have been held over five years, while 2,536 sit beyond the traditional exit window.
2021 vintage struggles: The 2021 buyout vintage has returned just 0.14x DPI by year four, as borrowing costs rose from 5%-6% to 9%-11%.
Maturities stack up: Sponsored leveraged-loan maturities reach $180.4 billion in 2028, $262.2 billion in 2031, and $230.8 billion in 2032, concentrating refinancing risk.
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