Private Equity

With fundraising increasingly tied to cash returned to investors, private equity firms are finding new ways to generate liquidity. But LPs are looking beyond the headline DPI numbers to see how that cash was produced — and how much risk remains.

The fundraising freeze is producing a smaller class of lower-middle-market winners with strong distributions, narrow strategies and multiple paths to an exit.

Higher acquisition multiples are forcing private equity firms to demand more strategic value from add-ons.