Zombie private equity funds

Cheap credit has given rise to about $116bn (£73.8bn) being locked up in “zombie” private equity funds, researcher Preqin said yesterday. Bosses at private equity houses sitting on assets with no intention of selling them and no plans to raise another are giving rise to the dead investments, the group said. “No one is a winner when zombie funds are involved and they represent a clear misalignment of interests between the fund manager and investor,” the firm said.