Private equity fundraising rebounds but slow exits test LP patience
Consumer portfolio companies have seen their pre-exit holding periods ease from 6.1 years in 2023 to 5.2 years. Industrials remains the only major sector below five years, at 4.9 years; a reflection, the report suggests, of stronger buyer demand tied to defense, infrastructure, and data-related industries.
Industrial goods stands out for both current deal volume and future supply pressure. Around one-third of its portfolio companies have been held for at least seven years. The sector’s declining median holding period suggests exits are already progressing, while a deep pool of mature assets should continue to support deal flow.
Fund-level data offers a measure of progress. Between the end of 2024 and the end of 2025, the ratio of residual value to paid-in capital declined across most fund groups while distributions to paid-in capital increased, indicating that more value is being realized and returned to investors.
The 2014 vintage recorded an 8 percentage point decline in its residual value share. Recent vintages, however, remain heavily unrealized.
Fundraising concentrates at the top as secondaries surge
The fundraising recovery is real but unevenly distributed. The top 20 funds by size accounted for $171 billion of the $312 billion raised in H1 2026 – more than half of all capital closed in the period. Vehicles from KKR, EQT, Clearlake, and Blackstone dominated that group, reflecting limited partners’ continued gravitational pull toward global multi-asset managers with established track records.
