While the exit markets are beginning to show signs of reopening as we move through the first quarter of 2026, GPs dealing with a backlog of unsold assets and the need to return capital to investors are still on the hunt for liquidity solutions.
In recent years, we have seen extended hold periods, rising costs of capital and the need for balance sheet optimization, all of which have transformed the way private equity managers meet investor demands for liquidity. The industry’s characteristic creativity has led to a rapid escalation in the sophistication and mainstream adoption of newer tools including NAV-based financing and GP-led secondaries.
In recent years, we have seen extended hold periods, rising costs of capital and the need for balance sheet optimization, all of which have transformed the way private equity managers meet investor demands for liquidity. The industry’s characteristic creativity has led to a rapid escalation in the sophistication and mainstream adoption of newer tools including NAV-based financing and GP-led secondaries.
