Private Equity Is Struggling to Overcome Doubts on Valuations

Blackstone Inc., Apollo Global Management and a host of private-capital mammoths have pledged to invest hundreds of billions of dollars in Europe over the next decade. But the immediate outlook for buyout deals is still looking pretty dicey.

After years of stagnant dealmaking, M&A bankers finally had some cause to celebrate in the last quarter as several big-ticket corporate deals were signed and fears about US President Donald Trump’s tariff policies abated somewhat — temporarily, at least. And yet, most buyout firms are in no mood to party.

While stock markets have hit fresh highs lately, refueling hopes of ...