Bank of America It has formed a new team within its investment bank focused on helping private equity firms exit their investments, Bloomberg reported I mentioned Wednesday (March 25).
According to the report, the private equity M&A group will use a variety of the bank’s resources to help private equity firms generate income from their portfolio companies.
Bank of America is launching this team at a time when the initial public offering (IPO) and exit market is unpredictable, private equity firms are holding on to a record number of portfolio companies, holding on to unsold companies longer and looking for ways to monetize them, according to the report.
“The pace of sponsor exits has been structurally low over the last few years, and by definition will need to pick up,” Eamonn Brabazon, co-head of global mergers and acquisitions at Bank of America, told Bloomberg. “This means sponsors will make up a larger share of the M&A pie in the future.”
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It was reported in February that in 2025, Private equity Companies returned less dividends to their investors for the fourth straight year, as the industry holds $3.8 trillion in unsold assets and struggles to raise cash for new funds.
The value of deals last year rose 44% from 2024 to $904 billion, although they had little impact on the industry’s “dry powder”, or the money available for investment. Total transactions decreased by 6%.
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It was reported in August that Private equity Operations have been struggling to raise money despite offering unprecedented incentives to investors.
At that time, fundraising among private equity firms was down by about a third from levels seen in 2021. High interest rates and a slowdown in dealmaking have left private equity firms unable to sell trillions of dollars worth of legacy investments, leading to increased frustration among investors as well as investors refusing to back the funds.
In June, this was reported Private equity The groups were sitting on $1 trillion in unsold assets, and those assets represented capital that could have been returned to investors in a normal market climate.
High interest rates, the White House’s erratic tariff policy and geopolitical turmoil have eroded corporate valuations, resulting in companies holding on to portfolio businesses much longer than expected, the report said.
