Private equity funds hold a record in unsold assets at $3 trillion — Bain

Private equity funds control 28,000 companies valued at $3 trillion. Sales fell by 44%, reaching a decade low

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Globally, investment funds own a record number of companies that have not found new owners — 28,000, with a total estimated value of over 3 trillion dollars, according to the latest report from Bain & Co.

This number of assets awaiting sale is unprecedented in history. The report highlights a significant drop in sales volume — by 44% over the past year, marking the lowest level in the last decade, reports "Interfax-Ukraine".

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The main obstacles to deals have been high interest rates, which have created serious difficulties for funds wishing to dispose of their assets.

Hugh MacArthur from Bain suggests that it could take up to three years for the situation to recover and for capital to return to investors, noting the current conditions as a primary market problem.

Typically, funds hold companies in their portfolio for three to five years, but now more than 40% of them have been awaiting sale for over four years, indicating the funds' readiness for a sell-off.

However, despite the overall difficulties, there are positive trends towards returning to standard investment exit mechanisms, such as IPOs.

For instance, the German company Douglas, owned by CVC Capital Partners, recently announced its listing on the Frankfurt Stock Exchange with an anticipated valuation of 6 billion euros.

Similarly, the Swiss company Galderma, specializing in skin care cosmetics production, announced plans for an IPO valued at about 2.4 billion dollars on the Swiss Stock Exchange.

Galderma was founded as a joint venture between L'Oreal and Nestle in 1981 and was acquired by investors led by EQT for 11.5 billion dollars in 2019.

It was previously reported that gold prices are confidently rising, approaching the historical maximum value, while silver reached its highest price last month. The increase in precious metals prices, with gold rising by 0.5% and silver by 2.6%, is explained by the weakening dollar and inflation expectations.

Earlier, the U.S. Treasury Secretary Janet Yellen expressed doubts about the possibility of returning U.S. interest rates to pre-pandemic levels, pointing to inflation and increased bond yields as the main obstacles to such a development.

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