The challenge of raising a new fund isn't easing up any time soon, especially if more M&A professionals are in agreement that limited partners (LPs) are now looking to put more money in fewer funds.

"It's a problem," says Joe Burkhart, a managing director at Saratoga Investment Advisors, which oversees the portfolio of business development company Saratoga Investment Corp. (NYSE: SAR). The number of what Burkhart calls "zombie" firms is escalating.

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