Trends Impacting
Private Equity and Venture Capital
Key takeaways
01
Despite headwinds, little change to fundraising approaches
More than 40% of firms are continuing to raise funds at a regular cadence.
02
Public exits remain muted
With fewer IPOs taking place, more than 70% of firms expect their next exit to come via M&A.
03
Distributions become a key metric
As weak exit markets interrupt capital flows back to investors, LPs are placing greater emphasis on distributions.
Firms navigate fundraising headwinds
Despite a difficult environment, firms are generally staying the course.
More than 40% of firms indicate they continue to raise funds at their regular cadence.
Public exit expectations remain muted
Due to the dearth of IPOs, more than 70% of fund managers see their next exits coming from M&A activity.
Exits remain down from their highs in 2021, but investors are beginning to express optimism. Fewer than 20% of survey respondents believe the market will worsen through the end of the year.
LPs increase focus on distributions
As exit markets have stunted capital flows to LPs, the distributed paid-in capital multiple (DPI) has become a key return metric.
Venture capital respondents were more likely to identify DPI as the most important return metric for demonstrating fund performance.
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