In S&P Global, Ropes & Gray Partners Discuss Trends in Private Equity Holding Periods

In an S&P Global article, Ropes & Gray asset management partners Steven Zaorski and Warren Goodworth comment on the trend of longer holding periods for private equity buyouts in 2025.

Steve attributes the extended holding periods to global trade tensions and expectations of lower interest rates, noting that many firms are waiting for a more favorable environment before exiting investments. He expects exit activity to pick up in 2026 as monetary policy loosens and valuations improve.

Warren points out that sectors like consumer discretionary are particularly affected by economic uncertainty and supply chain issues, leading firms to hold assets longer until market conditions stabilize.