Private equity firms’ reluctance to offload investments in uncertain markets is damaging the long-term health of portfolio companies, according to a report published in the same week that the chief executive of 3i Group warned about the danger of an “exit overhang” in the industry.

The study by corporate finance advisers BDO found that 72% of private equity managers admitted that the rate of exits so far in 2010 was low or too low, while 38% of management teams said that delays to planned sale timetables was harming future growth ambitions.