Private equity firms are sitting on a growing pile of unsold US companies, with PitchBook estimating 13,325 such investments as of the end of May, up from 12,900 last October. At the current pace of exits, it would take 11 years to sell that existing inventory, a two-year increase compared to last fall. The backlog persists despite a strong economy, record stock market, and booming IPO market, creating what former Greenhill & Co. CEO Scott Bok calls a conundrum for the industry. Total global M&A deal volume from financial sponsors has declined, with proceeds down 11% and deal count down 8% year to date through June 24 compared to last year, and down by a quarter or more from 2021 and 2022 peaks. Roughly a third of portfolio companies are four to six years old, and another 26.9% have been held for seven years or longer, leading to a stalemate between fund managers seeking better valuations and limited partners wanting returns. The AI boom has added complexity, as investors question which software firms will benefit or be disrupted, putting pressure on funds to deploy capital and create liquidity, with healthcare and industrials seen as more resilient sectors.