Zombie Funds Sucking On $116 Billion In Assets: Preqin

Apparently it is not just World War Z where ferocious zombies suck the blood out of innocent bystanders—I don’t know the plot, so I am just guessing based on how all these vampire, zombie and werewolf invasions play out. The asset management industry also has a unique strain of zombie funds which have entrapped billions of dollars in their tight grips and have no plans to expand, raise more money or churn out decent returns.

Preqin’s research estimates that there are about 1200 private equity funds that have stayed dormant over the last 7 or so years. Preqin defines a zombie fund as a set up where the general partner is sitting on shares in...