Geopolitical tensions cause $1 trillion in PE assets to remain unsold, impacting deals and investor returns.

From Yahoo Finance: 2025-06-23 00:01:00

Uncertainty has dominated Wall Street in 2025, with PwC estimating that $1 trillion in assets remain unsold due to private equity groups holding on amidst geopolitical tensions. Plans for $120 billion in IPOs were shelved in April, with deal volume and value flat year-over-year at $567 billion through May.

The Federal Reserve’s decision to delay rate cuts due to tariff impacts has caused a lack of cheap debt, leading to 30% of private equity investments being held for over five years. PwC’s May Pulse Survey showed 30% of respondents pausing or revisiting deals due to tariff concerns, impacting investor returns.

May data shows a more optimistic outlook, with a 6.1% increase in deals worth over $100 million from April. While overall deal volume fell 6.2% from May 2024, there is hope that the worst of the tariff disputes may be over, potentially thawing the M&A market deadlock.

Read more: ‘Uncertain’ 2025, M&A Deadlock Freeze $1 Trillion in PE Assets