Private equity firms are rethinking exit strategies due to the scarcity of initial public offerings (IPOs).
As IPOs remain scarce, executives are focusing on alternative methods like breaking up businesses or selling companies to themselves through 'continuation funds.'
With a record backlog of unsold assets, buyout firms are finding it challenging to take companies public or sell at acceptable prices, pushing them to explore other avenues for returns.
Private equity-backed IPOs have decreased significantly this year, prompting IPOs to rank lower as an exit option, leading executives to open up their 'toolbox' for alternative strategies.