Private equity firms are holding approximately $1 trillion in unsold assets, capital that would typically have been returned to investors under normal market conditions, according to a report by PricewaterhouseCoopers (PwC). Factors such as sustained high interest rates in the U.S., fluctuating tariff policies under the White House, and broader geopolitical uncertainty have contributed to a sharp decline in company valuations. As a result, firms are retaining portfolio companies longer than planned, slowing the pace of dealmaking. “Patience is wearing a little bit thin,” said Kevin Desai, PwC’s U.S. Deal Platform Leader, reflecting investor frustration over delayed returns. Mergers and acquisitions, often seen as a key indicator of economic activity, have remained flat, with 4,535 deals totaling $567 billion through May.
According to PwC’s May 2025 Pulse Survey, 30% of companies reported delaying or revising deals due to tariff-related issues. The situation worsened after the announcement of new tariffs in April, when IPO plans for firms valued at over $120 billion were put on hold. Josh Smigel, PwC’s U.S. Private Equity Leader, stated, “In a typical M&A cycle, $1 trillion would have already been put back into the market.” General Atlantic Co-President Gabriel Caillaux added, “I can’t remember in my 20 years of growth equity investing, not having an IPO window open for this kind of long period of time.”
