Deals

Buyout Funds Caught in Deal Slump Lag S&P by Most in Two Years

  • PE funds’ 1.5% return compares with 10% for listed peers in 1Q
  • Assets lingering on balance sheets longer delays payouts
Photographer: Michael Nagle/Bloomberg
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Private markets are returning about seven times less than the S&P 500 as a slump in dealmaking forces buyout firms to delay payouts to investors.

Private equity returned 1.46% in the first quarter compared with more than 10% for the S&P 500, according to data from State Street Corp. That marks the biggest performance gap in at least two years, according to data compiled by Bloomberg.