Why private equity is stuck with ‘zombie companies’ it can’t sell

CNBC examines why private equity firms are increasingly stuck with so-called “zombie companies” they cannot sell amid higher interest rates and frozen exit markets. Oliver Gottschalg, professor at HEC Paris Business School, explains that the private equity “machine is stuck”: without exits and distributions, investors lack liquidity to commit to new funds, creating a systemic logjam across the industry.