Private Equity’s $4 Trillion Backlog | What It Means for Markets, LPs, and the Industry’s

Private equity firms accumulated a record $3.8 trillion in unrealised portfolio value by end-2025, even as exits rose to $717 billion—the second-highest figure on record. The persistent backlog stems from elevated interest rates compressing deal multiples and extending average holding periods to seven years. A sixfold rise in the unrealised value of funds older than a decade signals growing structural strain from zombie vehicles. Critically, recovery is concentrated among the largest players: a handful of mega-deals drove most of the improvement in both exits and acquisitions, while smaller firms and fund closings declined. Bain & Company describes the industry as being at an “inflection point,” requiring a fundamental shift from financial engineering to operational value creation.

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