Private equity enters its 'Darwinian' era as experts warn some funds face extinction

Falling returns, delayed exits, longer holding periods and tougher fundraising conditions are weighing on the private equity industry, and some firms may not make it through.

A recent report from Bain & Company shows private equity firms delivered weak payouts to investors for the fourth straight year. About 32,000 portfolio companies, worth an estimated $3.8 trillion remain, unsold. Firms are now holding assets for roughly seven years on average, up from five to six years between 2010 and 2021. Exit volumes fell 2% last year.“It’s a very bumpy road right now for PE firms,” said Romain Bégramian, managing partner at GP Score, which evaluates private equity firms’ value-creation capabilities. He said the industry is going through a long-overdue shakeout and warned that some smaller funds will not survive.

[https://www.cnbc.com/2026/02/27/private-equity-funds-face-closure-and-extinction-in-darwinian-era.html](https://www.cnbc.com/2026/02/27/private-equity-funds-face-closure-and-extinction-in-darwinian-era.html)

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