How Money Works

So... Is Private Equity Collapsing Yet?

Thanks to Monarch for partnering with me! Start your free trial and get 50% off your first year of total money clarity using my link https://monarchmoney.yt.link/VXmiSMo or code hmw50 for 50% Off Monarch Core tier. ------ Sign up for our FREE newsletter! - https://www.compoundeddaily.com/ Books we recommend - https://www.howmoneyworkslibrary.com/ Listen on Spotify - https://open.spotify.com/show/5gi1JobDJC3QqaF4aKfenR?si=f3IsgWIlSKObF8BT1Fitig ----- My Other Channel: @HowMoneyWorksUncut @HowHistoryWorks @De-Monetised Edited By: Svibe Multimedia Studio Music Courtesy of: Epidemic Sound Select Footage Courtesy of: Getty Images 📩 Business Inquiries ➡️ [email protected] Sign up for our newsletter https://compoundeddaily.com 👈 All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind. #privateequity #money #finance *** Sources *** https://www.ft.com/content/6c3706b4-3862-4ea6-8c1a-8baf8df371f6?syn-25a6b1a6=1 https://www.ft.com/content/c41346b0-05be-4d57-9d14-e90a018f5e25?syn-25a6b1a6=1 https://www.wsj.com/finance/investing/swiss-private-equity-giant-caps-investor-withdrawals-sparking-share-selloff-a4229304 https://www.reuters.com/legal/transactional/morgan-stanley-restricts-redemptions-private-credit-fund-after-withdrawals-surge-2026-06-23/ https://www.bloomberg.com/news/articles/2026-06-19/bain-capital-clo-tranche-defaults-in-post-2008-first-for-europe https://www.bain.com/insights/outlook-gaining-traction-global-private-equity-report-2026/ https://medium.com/the-investors-handbook/the-5-trillion-exit-problem-private-equity-funds-are-selling-assets-to-themselves-ce6f95d7c24b https://www.spglobal.com/spdji/en/indices/equity/sp-bdc-index/?currency=USD&returntype=P-#overview https://www.wsj.com/finance/investing/private-equity-firms-are-sitting-on-a-nine-year-backlog-dbec673a https://www.ft.com/content/ae4b6c77-9b3d-46fb-a7fc-59f072e7291b?syn-25a6b1a6=1 https://www.medallia.com/platform/signals/ https://www.thomabravo.com/press-releases/thoma-bravo-completes-34.4-billion-fundraise https://ir.ea.com/press-releases/press-release-details/2025/EA-Announces-Agreement-to-be-Acquired-by-PIF-Silver-Lake-and-Affinity-Partners-for-55-Billion/default.aspx https://fred.stlouisfed.org/series/FEDFUNDS https://www.visualcapitalist.com/wp-content/uploads/2023/10/US_Mortgage_Rate_Surge-Sept-11-1.jpg https://www.axios.com/2025/03/11/trump-ftc-ferguson-mergers-acquisitions https://caia.org/blog/2026/02/11/continuation-vehicle-boom-structural-shift-or-liquidity-patch https://globalrealassets.georgetown.edu/insight/private-equity-and-data-centers-exit-strategies-explained/ https://finance.yahoo.com/markets/article/private-equity-is-struggling-with-exits-even-as-the-ai-deal-boom-takes-over-wall-street-133536900.html https://fred.stlouisfed.org/graph/?g=1X2lL https://fred.stlouisfed.org/series/WFRBST01112 https://www.cfr.org/podcasts/spillover/is-the-gulf-still-the-capital-of-capital-how-war-could-hurt-americas-tech-funding ------ So… is private equity collapsing… yet? Late last week the industry publicly reported its second largest loss ever, Private credit markets that financed alot of that debt fueled speculation have seen massive withdrawals over liquidity concerns A Bain Capital European Loan Tranche Defaulted for the first time since 2008, Investor payouts have slowed to a multi-decade low (also not seen since the GFC) People can’t pull their money out fast enough The few public assets that we DO have information on are down by as much as 30% at the same time the border market is up by the same amount. And the number of unsold companies acquired by these firms has ballooned to over 32,000. It clearly doesn’t sound great… but uhhh… at the same time, last year, the industry “supposedly” had its second best year ever… (which kinda makes me look like a bit of an idiot right?). Private equity firms made almost a trillion dollars in new acquisitions and perhaps more importantly sold over seven hundred billion dollars worth of businesses which was only ever surpassed by 2021 when interest rates were significantly cheaper… But this does raise the obvious question of… how can both of these reports be true at the same time? Were the naysayers (myself included) just wrong about this industry or was 2025 something of a going out of business sale?