Bain reports that global buyout AUM has tripled over the past decade, while distributions as a percentage of NAV have fallen from an average of 29% in 2014–2017 to roughly 11% recently. Private market scale has outrun the mechanisms for returning capital to limited partners.
Commercial insight
This is the hidden sales problem for private markets. LPs may still like the asset class, but many need distributions before making new commitments. The winners will be managers with real DPI, continuation-vehicle solutions, secondaries capabilities, co-investment access and credible exit pathways.
Allocator insight
The real underwriting question is no longer "What is the IRR?" It is "When does the money come back, and under what market conditions?" Liquidity design is becoming as important as headline performance.
Source: Bain & Company, Global Private Equity Report 2025.