Private equity payouts significantly underperformed in 2024, continuing a trend for the third year, with firms cashing out just half the value of typical annual investments. This shortfall, influenced by high financing costs and lower corporate valuations since 2022, underscores the challenges ahead. While novel strategies like continuation funds have increased, achieving the historical norm of exits remains tough. The industry might see some relief with anticipated M&A activity in 2025, but full recovery is expected to be gradual.
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