Family offices are increasingly concerned about the proliferation of zombie funds in private equity, with Stonehage Fleming and GreenBear Group advocating for rapid wind-downs of aging funds. According to research from TREO Asset Management, zombie funds have reached record levels, and industry experts expect this trend to accelerate.

Vishnu Amble, founding director at GreenBear Group, reports encountering dormant funds multiple times daily in his portfolio and professional interactions. The single-family office, co-located in Miami and Singapore, is among those pushing for more aggressive management of these aging investments. These funds pose significant challenges for limited partners (LPs), particularly around valuation uncertainties and capital deployment issues.

The rise of zombie funds reflects broader market dynamics, including extended fund lifespans and difficulty in fully deploying committed capital. Family offices and other institutional investors are now prioritizing strategies to address these dormant assets, seeking to minimize their exposure to valuation disputes and illiquid investments. The trend underscores growing pressure on private equity firms to either revitalize struggling funds or execute orderly wind-downs, as investors demand greater accountability and returns from their long-term commitments.