Story perspectives

Private Equity's $107 Billion Self-Deals Spark Concerns

12/31/2025

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Summary

Story summary

In 2025, private equity firms sold about $107 billion of assets to themselves, up from $70 billion in 2024.
The trend is driven by a scarcity of independent buyers, allowing firms to maintain control and generate new fees while returning cash to older fund investors.
These self-dealing transactions raise concerns about conflicts of interest because the same firm acts on both sides, potentially reducing backers' leverage and slowing procurement.
The shift in pricing power toward those able to raise new capital could inflate acquisition premiums and cause execution delays.

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Story summary

In 2025, private equity firms sold about $107 billion of assets to themselves, up from $70 billion in 2024.
The trend is driven by a scarcity of independent buyers, allowing firms to maintain control and generate new fees while returning cash to older fund investors.
These self-dealing transactions raise concerns about conflicts of interest because the same firm acts on both sides, potentially reducing backers' leverage and slowing procurement.
The shift in pricing power toward those able to raise new capital could inflate acquisition premiums and cause execution delays.