Billionaire warns private equity returns have dried up

The private equity sector is facing a reckoning, with investors seeing little to no returns and exit options narrowing, according to Egyptian billionaire Nassef Sawiris. In a Financial Times interview, Sawiris criticised the widespread use of continuation funds, calling them a “scam” that allows firms to recycle assets between controlled entities instead of pursuing sales or IPOs. The post-pandemic slowdown in dealmaking and public listings has left funds holding substantial assets without viable exits. A Houlihan Lokey report noted continuation funds surged nearly 50% last year to a record USD76bn. Sawiris also took aim at the industry’s fundraising obsession, saying firms devote far more attention to capital raising than managing portfolio companies, underscoring mounting investor frustration over stagnant returns.