Private Equity Deal Rut Spurs Firms to Raise Cash Creatively (1)

For years private equity firms had a simple way to keep investors happy: sell assets and share the proceeds. As the golden era of easy dealmaking and cheap debt ends, they’re having to get more creative.

Private equity deal volumes have almost halved in the US since the end of 2021, according to PitchBook, and buyout groups are scrambling to extend the life of investments and maintain the flow of money to their backers.

With the cash paid out to investors from selling assets falling 67% from its second-quarter 2021 peak, firms are hunting for other options. Executives at ...