Payments for direct investments worldwide have sharply decreased.

Chart of Payments for Direct Investments
Chart of Payments for Direct Investments

In 2024, private equity funds were only able to cash out half of the value of the investments they usually sell. For the third year in a row, payments to investors are decreasing due to deal issues caused by the drought.

According to the Financial Times, funds typically sell 20% of their investments annually. However, industry leaders anticipate that this year's cash payouts will amount to approximately half of the usual figure. This is reported by Ekonomichna Pravda.

It is noted that over the last three years, funds have missed out on about $400 billion in payouts to their investors, which is significantly lower than average figures.

Such data indicates growing pressure on companies that are forced to find ways to return funds to investors, including exiting investments in the next year.

Since the beginning of 2022, firms have been trying to strike deals at more favorable prices, resulting in increased financing costs and decreased corporate valuations.


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