Private equity houses are preparing for a significant shake-up next year. After several years of holding on to investments that just wouldn't move, portfolios are bulging with mature companies that became harder to offload when markets turned sluggish and borrowing costs climbed.

This growing pile of stuck assets has been sitting on the sidelines, waiting for a window to exit. The question now: will 2026 finally be the year when PE players make their move? The timing could matter—fund managers are looking at market conditions to determine whether they'll dump these holdings in bulk or try a more measured approach.

What's particularly interesting for market watchers is how this PE cleanup could ripple through various asset classes. When institutional capital starts moving aggressively, it sends signals about where money sees opportunity next. Higher interest rates made deal-making expensive; if rates stabilize or ease, expect a flood of exits.