Apollo Global Management president Jim Zelter has warned that the private equity industry faces an inevitable shakeout, with some firms unlikely to survive the prolonged fundraising slowdown, according to a report by Bloomberg.
Speaking at the Barclays Global Financial Services Conference, Zelter said the sector should not expect a “massive monetisation cycle” in the near term and predicted that many managers have already raised what will prove to be their final funds.
Elevated interest rates since 2022 have constrained deal activity and slowed distributions back to LPs, leaving investors with less capital to commit to new vehicles. Global private equity fundraising slipped again in Q2, reaching $149.9bn—down 4.6% from the first quarter, according to figures from Paul Weiss.
“There will be some firms that are just not around in five to seven years, but that’s a natural washout,” Zelter said, adding that Apollo expects to be among a “handful of winners” as the industry consolidates.
His comments echo remarks from KKR CFO Robert Lewin, who also forecast greater attrition among managers as competition for capital intensifies.
