Buyout and Debt Funds Struggle With $632 Billion Stockpile (1)

Private markets firms have been slow to spend hoards of capital raised earlier this decade, sparking tough talks with investors about whether they should get more time to find investments.

As of September, buyout firms and managers of private credit funds were sitting on $631.8 billion in unused fire power raised from 2020 through 2022, according to the most recent data compiled by PitchBook. The tally including other kinds of private capital, such as venture capital and real estate, totals $1.28 trillion.

The glut of capital shows how striking deals has proved harder than expected due to intense competition, high ...