Private equity dealmaking has declined to four-year lows as firms contend with high interest rates and recession scares. According to Dealogic, private equity deal volumes have fallen 63% from last year to $293.5bn. Private equity investors are increasingly shunning businesses with unpredictable cash flows and pursuing fewer deals, amid rising borrowing costs and the interminable trade conflict. The difficult market for initial public offerings has also contributed to the slowdown, making it harder for private equity firms to exit investments. However, some believe that the industry could soon rebound thanks to a backlog of stored-up funding.