A $16 billion freight deal humbles private equity

The largest-ever private equity deal in the transportation sector has fallen apart, highlighting the challenges facing the industry.

KKR & Co. Inc. agreed in February 2022 to buy a controlling stake in Global Logistic Properties Ltd. for $16 billion, but the deal collapsed in July 2023 after the two sides failed to agree on terms.

The collapse of the deal is a blow to KKR, which has been one of the most active private equity investors in the transportation sector in recent years.

The deal's collapse is also a sign of the challenges facing the private equity industry, which has been struggling to generate returns in recent years.

The industry has been hit by a number of factors, including rising interest rates, slowing economic growth, and increased competition from other asset classes.

As a result, private equity firms have been forced to become more selective in their investments and to focus on companies that are well-positioned to grow in the current environment.

The collapse of the KKR-GLP deal is a reminder that even the largest and most experienced private equity firms can be humbled by the challenges of the market.

It is also a sign that the private equity industry is facing a number of challenges in the current environment.