Where Is the $3.8 Trillion in Assets Stuck? High Interest Rates Not only Make Borrowing More Expensive, but Also Make Private Equity Harder to "Sell" - TNL The News Lens Key Commentary

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High interest rates widen the valuation gap between buyers and sellers, making it difficult for private equity firms to exit. This leads to longer asset holding periods, reduced cash returns for investors, and hinders overall capital circulation, creating a liquidity bottleneck. The uncertainty of AI further exacerbates the problem.