Explainer

Explainer: Why private equity firms holding onto companies is worrying for future funding

There is a competitive and difficult environment for private companies looking for funding, but Irish firms stacked up well last year, placing them in good stead for the year ahead

Private equity companies are sitting on 28,000 unsold companies worth $3 trillion (€2.75 trillion) after a difficult year for dealmaking.

Private equity (PE) companies are sitting on 28,000 unsold companies worth $3 trillion (€2.75 trillion) after a difficult year for dealmaking.

This means there is a competitive and difficult environment for private companies looking for funding, but Irish firms stacked up well last year, placing them in good stead for the year ahead.

What’s happening?

Private equity groups invest and acquire companies that aren’t publicly listed or traded. They then look to increase the value ...