The Big Take
Private Equity’s Slow Carnage Unleashes a Wave of Zombies
A historic shakeup is threatening to snare many small, struggling or fading money managers unable to raise fresh funds.
In its heyday, Fenway Partners snapped up a fleet of companies from outposts overlooking Manhattan and Los Angeles. Decades later, a three-man team manages its remnants from a beach town in Rhode Island.
Gone are the big pension clients that cashed out stakes at discounts after tiring of waiting for Fenway to wrap up bets. The firm hasn’t tried to raise a new flagship fund since 2006. Its main asset is a 20-year investment in a maker of football helmets beset by lawsuits from athletes over concussions. Fenway set up new vehicles to take stakes in the business starting several years ago, gaining yet more time to exit.
