Private equity’s $860 billion zombie company problem

Private equity faces a 'zombie company problem,' with PitchBook estimating about $860 billion in zombified net asset value across U.S. PE funds that are over seven years old. This issue is driven by the accumulation of companies, including over 4,500 firms held for five or more years, which theoretically should have been exited. The problem emerged during the zero-interest-rate-policy (ZIRP) era when cheap debt fueled a buyout boom.