The Big 5 PE Funds & How They Are Struggling 5-14-26 - Becker Business

Summary3 min read

Becker Business Podcast

Episode: The Big 5 PE Funds & How They Are Struggling
Host: Scott Becker
Date: May 14, 2026

Episode Overview

In this concise solo episode, Scott Becker discusses the current challenges facing the five largest private equity (PE) funds. He examines their recent market performance, the changing dynamics in their profitability, and the reasons behind their struggles. The episode is positioned as a timely business update for investors and those interested in the private equity sector.

Key Discussion Points & Insights

1. The Big Five Private Equity Funds: Performance Snapshot

[01:15 – 01:46]

Scott Becker highlights the poor year-to-date (YTD) performance of the leading PE firms:
- Blackstone: Down ~21% YTD
- KKR: Down ~21% YTD
- TPG: Struggling the most, down nearly 31% YTD
- Carlyle Group: Down 16% YTD
- Apollo: Down 9% YTD

2. The Root Causes of Struggles

[01:47 – 02:26]

While these firms continue to:
- Profit from management fees due to expanding assets under management (AUM)
  (“They're profiting because they have so much assets under management. So they're making their fee incomes, making them work” — Scott Becker, 01:58)
They are not achieving traditional exits (e.g., IPOs, sales), which have previously been key to their high returns.
(“At the same time, they're not getting the traditional exits that really drove private equity funds and their fund families to great success.” — Scott Becker, 02:06)
Summary of the dilemma: One side of the business—fee income—is working well, but the other—successful exits and investment returns—is lagging.
- “So you're seeing one part of the equation work, the other part of the equation not work so well. And that's sort of the conflict … with private equity in the big five private equity funds currently.” — Scott Becker, 02:14

3. Personal Reflection

[02:30 – 02:41]

Scott Becker shares a personal note on the volatile learning experience of investing in PE:
- “My investments in private equity have not gone so well, so it's a constant education and learning process.” — Scott Becker, 02:35

Notable Quotes & Memorable Moments

“Blackstone, the biggest of the big, and KKR are each down about 21% year to date. TPG is struggling the most and down nearly 31% year to date. Carlyle Group down 16% year to date. And finally Apollo down 9% year to date.”
— Scott Becker [01:16]
“They're profiting because they have so much assets under management. So they're making their fee incomes, making them work. At the same time, they're not getting the traditional exits …”
— Scott Becker [01:58]
“So you're seeing one part of the equation work, the other part of the equation not work so well. And that's sort of the conflict … with private equity in the big five private equity funds currently.”
— Scott Becker [02:14]
“My investments in private equity have not gone so well, so it's a constant education and learning process.”
— Scott Becker [02:35]

Key Takeaways

The five largest PE funds are facing a tough year, with notable declines in stock performance.
Growth in assets under management has kept fee income stable, but the lack of traditional exits is dragging down returns.
This tension spotlights the changing environment and challenges for large-scale private equity.
Even experienced investors like Scott Becker are finding this to be an ongoing learning journey.

Timestamps for Important Segments

[00:56] — Episode Introduction & Overview
[01:15] — Breakdown of YTD Performance of the Big Five PE Funds
[01:47] — Discussion on Management Fees vs. Traditional Exits
[02:30] — Host’s Personal Reflection on Private Equity Investing

This episode is an insightful, focused commentary for anyone following the private equity sector, offering factual performance data, an analysis of the industry’s business model struggles, and a candid investor’s perspective.

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Transcript4 lines

[00:00]
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[00:30]
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[00:57]
Scott Becker
This is Scott Becker with the Becker Business and the Becker Private Equity Podcast. We've got a number of episodes you'll get over the next several days, many of them short business episodes, some episodes with guests that are much longer. Today's discussion is going to be about the big five PE funds and how they are struggling. But you'll have separate episodes this week about Nvidia, Microsoft, making life choices and in your first job. So advice for people on their first job. So here is the and it comes out of specific thinking and situation. So the concept on the big five private equity funds. Here's what's going on with them and all of them are struggling. Blackstone, the biggest of the big, and KKR are each down about 21% year to date. TPG is struggling the most and down nearly 31% year to date. Carwell Group down 16% year to date. And finally Apollo down 9% year to date. So what you really see here is these firms and fund firms get bigger and bigger. They're profiting because they have so much assets under management. So they're making their fee incomes, making them work. At the same time, they're not getting the traditional exits they're that really drove private equity funds and their fund families to great success. So you're seeing one part of the equation work, the other part of the equation not work so well. And that's sort of the conflict that you've got going on with private equity in the big five private equity funds currently. Thank you for listening to the Becker Business and the Becker Private Equity Podcast. We watch the space closely. We find it fascinating. My investments in private equity have not gone so well, so it's a constant education and learning process that thank you for listening to the Becker Business and the Becker Private Equity Podcast.
[02:47]
Grainger Representative
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