Exit optionality Survey respondents are facing a range of challenges when it comes to effecting realizations for LPs. Finding a buyer sufficiently equipped to grow the company further is considered to be one of the biggest challenges when it comes to returning capital to investors in the next 12 months, according to 37% of respondents. Among other challenges, raising CVs and determining the right type of exits are each identified by 27% of respondents. Dealmakers, however, do have a wider range of channels now available to them for making LP distributions. Bain & Company figures show that 30% of portfolio companies held by buyout firms have already executed some kind of liquidity event, with managers successfully unlocking US$410 billion of cash using alternative sources of liquidity. “There is a focus across PE on improving DPI and making sure that liquidity is available for their ultimate investors, but these days it’s not all about an exit to drive liquidity. There are other levers,” Tomlinson says. There is a focus across PE on improving DPI and making sure that liquidity is available for their ultimate investors, but these days it’s not all about an exit to drive liquidity. Nick Tomlinson Dechert LLP GP-led secondary surge The GP-led secondary, in which a GP transfers one or more assets from an existing fund into a new vehicle, giving incumbent LPs the option to roll their stakes into the new vehicle or take cash, has become one of the most-used alternative liquidity routes utilized by GPs. Jefferies’ Global Secondary Market Review noted that GP-led deals climbed to a record high of US$47 billion through the first half of 2025. GP-led secondaries and CVs facilitate actual cash returns that boost DPI without having to sell the underlying portfolio company asset, which is why managers are turning to CVs when there is not a robust M&A market.
What strategies is your firm employing to navigate the current fundraising challenges? (Select all that apply)
ExpǸndinȌ into diffȃrȃnt invȃstmȃnt strǸtȃȌiȃs
64%
70%
74%
53%
GP-lȃd sȃcondǸry/continuǸtion fund
46%
60%
31%
51%
Portfolio-widȃ lȃvȃrǸȌȃ (ȃ.Ȍ., NAV fǸcilitiȃs)
42%
25%
51%
42%
SȃpǸrǸtȃ, dȃdicǸtȃd pool of cǸpitǸl for ȌȃoȌrǸphy or sȃctor-spȃcific sidȃ cǸrs
39%
35%
37%
42%
OffȃrinȌ customizȃd funds-of-onȃ or SMAs
29%
20%
31% 31%
SȃpǸrǸtȃ, dȃdicǸtȃd pool of cǸpitǸl on Ǹ dȃǸl-by-dȃǸl bǸsis for opportunistic/ spȃciǸl situǸtions/distrȃssȃd dȃǸls
22%
15%
26%
22%
TotǸl
AsiǸ-PǸcific EMEA North AmȃricǸ
35
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