Story perspectives

Private Equity Struggles: Low Returns and Unsold Assets

2/23/2026

Summary

Story summary

In 2025, private equity firms faced a challenging year, marking their fourth year of low investor returns.
Bain & Co reported distributions at 14% of net asset value, the second-lowest since 2008.
The industry faces $3.8 trillion in unsold assets and challenges raising new funds.
Rising interest rates and U.S. President Donald Trump’s tariff policies hindered dealmaking in 2025.
Experts say conditions may improve in 2026, spurring renewed deal activity.

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Story summary

In 2025, private equity firms faced a challenging year, marking their fourth year of low investor returns.
Bain & Co reported distributions at 14% of net asset value, the second-lowest since 2008.
The industry faces $3.8 trillion in unsold assets and challenges raising new funds.
Rising interest rates and U.S. President Donald Trump’s tariff policies hindered dealmaking in 2025.
Experts say conditions may improve in 2026, spurring renewed deal activity.