The term "zombie fund" is used to describe funds that have lived beyond their prime, having passed their designated time frame for creating value. This group includes not only funds that are beyond their fund terms, but also those that are beyond their investment period and perceived to be warehousing assets rather than returning capital to their LPs.
The term has gained currency in recent years due to the maturation of the private equity business. If the 1980s witnessed the establishment of today's successful franchises, the 1990s saw the widespread penetration of private equity into the institutional investor world. As increasing amounts of capital were deployed to private equity funds, manager proliferation became the norm.
Curing private equity 'zombies' - The Deal Pipeline (SAMPLE CONTENT: NEED AN ID?)