05/06/2026
Not every struggling portfolio company looks distressed.
Some are still growing revenue.
Some are still hitting projections.
Some still look healthy on paper.
But operationally, they’ve already started to break down.
In his latest Forbes article, Lou Mosca discusses the rise of “zombie” portfolio companies and why more businesses are becoming difficult to sell in today’s market.
The issue is not always the market.
In many cases, growth masked weak ex*****on for too long. Now buyers are looking deeper at margins, reporting, leadership, and operational discipline before they commit capital.
A business can continue operating for years while quietly losing value.
That’s the danger.
https://www.forbes.com/sites/louismosca/2026/05/06/the-zombie-portfolio-company-problem-why-some-private-equity-assets-become-unsellable/
Why some private equity portfolio companies become zombie assets — and what GPs can actually do to diagnose, triage, and exit them. Operational playbook for aging portfolios.