Becker Business Podcast: "PE Funds Getting Hammered 9-4-25"

Host: Scott Becker
Date: September 4, 2025

Main Theme

This episode zeroes in on the current struggles of major private equity (PE) funds, with Scott Becker analyzing the stock performance and underlying causes impacting industry giants. The conversation highlights the difficulties PE firms have in achieving profitable exits and raising new capital in a challenging market environment.

Key Discussion Points & Insights

1. Major PE Funds Under Pressure

• Focus on Industry Leaders:
  • The episode tracks the recent performance of three leading PE funds: Blackstone, KKR, and Apollo Global Management.
• Stock Performance YTD:
  • Blackstone: Down nearly 3% year to date (best performer among the three)
  • KKR: Down almost 9% year to date
  • Apollo: Down 20% year to date (called “a stalwart fund... really struggling”)

Scott Becker [01:15]: “Blackstone's down almost 3% year to date and that's performing the best of the big three. KKR is down almost 9% year to date and not performing so well. And finally, Apollo Global Management... it's down 20% year to date and really, really struggling.”

2. Market Dynamics and Root Causes

• Difficulties in Exiting Investments:
  • PE funds are having trouble selling portfolio companies due to a tough buy/sell environment.
  • High interest rates have stalled dealmaking and exit opportunities.
• Fundraising Harder:
  • Inflows to funds are not growing as hoped, adding to pressures.
• Key Statistic:
  • There are “30,000 investments” across PE funds described as “awfully ripe” – ready to be sold but not moving.

Scott Becker [01:46]: “The key stat showed that there's 30,000 investments for our private equity funds that are awfully ripe, that they've been holding onto, that they're waiting to get to market. And with interest rates high, the buy, sell environment, not great, having a hard time selling those.”

Notable Quotes & Memorable Moments

• On Blackstone:

  “Blackstone's down almost 3% year to date and that's performing the best of the big three.”
  — Scott Becker [01:12]

• On Market Struggles:

  “With interest rates high, the buy, sell environment, not great, having a hard time selling those.”
  — Scott Becker [01:50]

• On Industry-Wide Pressures:

  “PE funds getting clobbered. That remains the case.”
  — Scott Becker [02:03]

Timestamps for Important Segments

• 00:31 – Episode introduction and topic overview
• 01:00 – YTD performance breakdown of Blackstone, KKR, Apollo
• 01:30 – Underlying issues: fundraising and lack of exits
• 01:46 – Key stat: 30,000 ripe investments, difficulties selling due to market conditions
• 02:03 – Conclusion: “PE funds getting clobbered”

Episode Summary

Scott Becker delivers a clear-eyed report on the turbulence ravaging the private equity sector, pointing to flagging stock prices of major firms and the mounting backlog of unsold investments. High interest rates and a weak exit environment have put a brake on fundraising and portfolio sales, highlighting sector-wide headwinds. Becker succinctly frames the current climate as one where “PE funds [are] getting clobbered,” setting the tone for ongoing industry challenges.

Note:
This summary omits advertisements and non-content segments, focusing solely on the core discussion and analysis from Scott Becker.