PE's New Exit Reality – Why "Wait And See" No Longer Works

Private equity's traditional exit routes – secondary buyouts, trade sales and IPOs – have slowed dramatically, leaving sponsors with ageing portfolios and mounting pressure from LPs to distribute capital. With the average global hold period rising from 5.2 years in 2020 to 6.6 years by mid-2025 (S&P), the five-year cycle now often stretches to almost seven years or more.

This slowdown results from a perfect storm: persistent valuation gaps, higher borrowing costs, political uncertainty, and inconsistent portfolio performance. Lenders and potential buyers are more selective, asking tougher questions and demanding solid proof of resilient cash flow and a convincing growth story.