The private equity industry's annual SuperReturn conference in Berlin revealed growing anxiety among investors and fund managers. Scott Kleinman of Apollo Asset Management warned that the buyout sector faces consequences for its 2017-2022 exuberance, when cheap debt fueled aggressive dealmaking. Investors now show "varying degrees of acceptance" about disappointing returns from that period.

Kleinman noted that the traditional return drivers—buying low, selling high, and leverage—have largely disappeared. Operational improvements remain the only viable strategy, though even this approach faces complexity from macroeconomic pressures and the AI revolution. Fundraising has become notoriously difficult, leaving dealmakers scrambling for capital in an increasingly challenging environment.

Meanwhile, a KKR-led group committed $10bn to a new data centre venture led by former Amazon cloud chief Adam Selipsky, highlighting how alternative asset managers seek infrastructure plays amid energy constraints for tech growth. The contrast with struggling traditional buyout strategies was stark at the conference.

Event organizers attempted to lift spirits with complimentary smoothies and tote bags reading "Due diligence is my cardio," but the underlying message was clear: private equity faces a fundamental recalibration after years of easy money. The industry must adapt to generate returns in a world where cheap debt and quick flips no longer work.