Episode Details

There is a boom in dealmaking right now in the wealth management business, this is due to private equity firms buying up smaller firms. Private equity is also focused on other industries including veterinarians and dentists. However, private equity is dealing with a few issues going into 2026. First, they are sitting on a large pile of cash, approximately $880 billion. Second, the average holding period is still pushing up against their industry high at 7 years. Third, the number of companies sitting in private equity portfolios is at 15 years high of approximately 12,900. The industry is hoping that M&A and IPOs pick up in 2026, which will help pick up activity and reduce all these issues. This episode reviewed two articles from The Wall Street Journal (subscription required).