Private equity firm Astorg is struggling to secure enough commitments for its new €4bn flagship fund, failing to achieve a 'first close' since launching last November, according to sources. The French group, with €24bn in assets, faces reluctance from existing investors, signaling broader sector stress. This fundraising stall highlights the growing difficulty for mid-sized firms in the current environment.

Industry executives warn of a rising tide of 'zombie' firms that manage portfolios but cannot raise new capital. EQT's leader recently predicted 80% of private capital groups could become zombies within a decade. Astorg's challenges are compounded by its inability to sell portfolio company IQ-EQ, a planned €9bn disposal that has stalled, limiting capital for new investments and pressuring returns.

Astorg's woes follow a failed secondaries fund attempt last year, which led to staff cuts. The firm's aggressive growth push under former CEO Thierry Timsit, expanding beyond its European mid-market roots, has unsettled some backers. Recent internal equity buyouts by new leaders, after a failed sale process, underscore the firm's effort to preserve independence amid these fundraising headwinds.