Private Equity Zombies Expected to Multiply as Deal Lull Drags

Private equity investors are bracing for an increase in "zombie funds" as the market for deals stagnates, according to a survey from Coller Capital. These funds, which continue to operate but have little to no deal activity, reflect a broader slowdown in dealmaking that has left many investors concerned about their portfolios' health. The situation underscores the challenges faced by the private equity sector, highlighting how prolonged lulls in deal activity can lead to significant financial strain and operational issues within these funds. For investors, this means navigating a tricky landscape where the traditional signs of fund vitality are fading.