WTT: Can Private Markets Normalize?

2026-02-12

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In a world dominated by short-termism, does it seem odd that private equity holding periods are getting longer? Private equity professionals don't have different genes than other investors. They face a structural problem: too many portfolio companies cannot find a buyer. Private equity-owned businesses continue to grow in number and size, but demand from IPOs and strategics has not – and likely will not – keep up. This means that more companies will have to remain within the private equity ecosystem.

In a world dominated by short-termism, does it seem odd that private equity holding periods are getting longer?

Private equity professionals don't have different genes than other investors. They face a structural problem: too many portfolio companies cannot find a buyer.

Private equity-owned businesses continue to grow in number and size, but demand from IPOs and strategics has not – and likely will not – keep up. This means that more companies will have to remain within the private equity ecosystem.

The end of the private equity bottleneck is not in sight. Instead, the industry may be heading toward structural change.

In this WTT – Can Private Markets Normalize, I pose the question of whether private equity will ever be able recycle capital fast enough to support successive fundraises without strain.

The answer, I'm afraid, is no.

Read Ted's blog here.

Editing and post-production work for this episode was provided by The Podcast Consultant (⁠https://thepodcastconsultant.com⁠)

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