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.

Transcript

A (0:02)

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B (0:31)

This is Scott Becker with the Becker Business Podcast. The Becker Private Equity Podcast Today's discussion Our other episodes today talk about AI and some other issues. This discussion today talks about the private equity fund stocks and so the headline here and maybe the story of the podcast, the title of the podcast is Private Equity Funds Getting Hammered. So here's the deal. The three big PE funds that we follow are Blackstone, KKR and Apollo. And here's what's going on with these three. And this is really a story of people not getting exits done and fundraising getting tougher. 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, which has been a stalwart fund, just a really successful fund. It's down 20% year to date and really, really struggling. So those are what's going on here and really what's driving this is, you know, there's, there's a couple main things driving it. Yes, it's under management are not increasing like they'd like them to. But more important is a key stat. 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. So that's what we're seeing there in the PE fund environment. PE funds getting clobbered. That remains the case. Thank you for listening to the Becker Business Podcast. The Becker Private Equity Podcast. Thank you very much.