Private Equity Dealmakers Bemoan Exit Woes as Price Gaps Persist

Buyout firms are still having difficulty exiting many of their portfolio companies due to disagreements over valuation, according to an executive at Ares Management Corp.

High-quality companies — offering defensive characteristics or high growth — are getting sold at the same valuations as pre-Covid, said Stephane Etroy, head of European private equity at Ares. There are also deals for struggling companies that urgently need capital, but there are fewer transactions targeting companies in the middle of the two extremes, he said.

“There’s a bid/ask spread, and people just wait for better days,” Etroy said on a panel Wednesday ...