Peak Number of Private Equity Firms Run Zombie Risk, Arctos Says

A record number of private equity firms will turn into so-called zombie funds this year, as they struggle to reel in new investor cash, according to Ian Charles, co-founder and managing partner at Arctos Partners.

“The fundraising environment is so challenging,” Charles said in an interview with Bloomberg TV on Thursday, adding that fewer new private equity firms will be founded this year. “Today, firms are having a really hard time maintaining their growth trajectory.”