A $34 Billion Private Equity Exit Is Going to Be a Long Slog

One of private equity’s biggest challenges right now is getting money back to investors. Advent and Cinven have just made a small dent in the industry’s mountain of unsold assets by agreeing the sale of TK Elevator to Finland’s Kone Oyj. What a relief. But the deal — worth €29.4 billion ($34.4 billion) including assumed net debt — exemplifies the challenges buyout firms face as they monetize even their most attractive investments.

Advent and Cinven agreed to buy the business for €17 billion from Thyssen Krupp AG in February 2020, outbidding Kone and other buyout firms as Covid spread. It was a bold move. Lockdowns had begun in China and were about to kick in worldwide. Cramped spaces like elevators were no-go zones.