French buyout firm Astorg is struggling to raise sufficient capital for its latest flagship fund, highlighting ongoing strain across the European private equity fundraising market as investor caution increases and exit activity remains subdued, according to a report by the Financial Times.
The €24bn firm has yet to reach a first close on the fund launched in November 2025 and has not secured enough commitments to make the vehicle operational, according to people familiar with the process. The target size was reportedly at least €4bn, but investor participation from existing funds has been limited.
A key drag on fundraising has been the absence of a major portfolio exit. Investors have pointed to Astorg’s inability to sell one of its largest assets, IQ-EQ, a fund administration business acquired roughly a decade ago and previously expected to be sold for up to €9bn.
The slowdown comes amid broader concerns across private equity that weak distributions and a lack of realisations could lead to a wave of underperforming firms, with some industry executives warning that an increasing number of managers may become “zombie” fund houses focused only on managing legacy portfolios without raising new capital.
Astorg has defended its position, saying fundraising for the new fund is progressing in a “selective and competitive” environment and pointing to past successful exits, including the sale of Clario alongside Nordic Capital.
The firm has previously faced challenges in expanding beyond its traditional European mid-market focus, including a failed attempt to raise a secondaries fund and concerns among some investors over its shift toward larger fund sizes and international expansion.
Industry peers have similarly warned that the current environment is placing pressure on fundraising cycles, particularly for firms that have not recently delivered liquidity to investors. Analysts note that prolonged holding periods and limited exit opportunities are increasingly shaping allocation decisions in private equity markets globally.
