Private Equity Exits Slump to 2-Year Low in Q1 2025 Amid Market Uncertainty

Private equity exits dropped sharply in Q1 2025, recording the lowest quarterly total in two years. Global exit volume reached just 473 transactions, totaling $80.81 billion, per S&P Global Market Intelligence using Preqin Pro data. This marks a significant decline from late 2024 and reflects mounting pressure on PE firms to return capital to LPs amid deal delays and market volatility.

Key Highlights (Q1 2025 PE Exit Snapshot)

• 📉 473 exits globally (lowest since Q1 2023)

• 💰 $80.81B in disclosed value

• ⛔ IPOs: Only 18 PE-backed listings—5-year quarterly low

• 🕒 Major slowdown in exit timelines due to buyer caution and tariff-driven volatility

• 🔄 Fundraising campaigns delayed or paused due to liquidity bottlenecks

Market Context: Exit Pipelines Are Full—but Frozen

While the number of portfolio companies nearing exit has grown, deal completion has slowed significantly. According to Jeremy Swan, Managing Principal at CohnReznick, the challenge isn't sourcing deals—it's closing them:

“The volume of deals in process is very strong. It’s just that these deals aren’t closing. Buyers are being cautious.”

Tariff uncertainty, valuation mismatches, and limited financing appetite have converged to freeze even mature transactions. Industrial and cross-border sectors, in particular, are feeling the brunt of delays.

Pressure Mounts on GPs to Distribute Capital

Exits are essential for private equity's capital cycle. Without them, GPs struggle to return capital, impacting:

• LP IRRs and DPI benchmarks

• New fund pacing and capital calls

• Timing of GP fundraising cycles

“There’s a dire need to make sure they’re returning capital to their limited partners,” Swan emphasized.

According to Asante Capital, several high-profile fundraises originally scheduled for Q1 and Q2 2025 have been deferred, awaiting stronger exit comparables and more stable market signals.

High-Profile Deals Were Outliers

While the broader market cooled, a few notable transactions did push through:

1. $18.08B merger of Haitong Securities → Formation of Guotai Haitong Securities Co. Ltd.

2. $14.5B secondary transaction for Nord Anglia Education involving EQT Private Capital Asia and CPPIB

Both were in non-cyclical sectors with long lead times and low tariff exposure—making them exceptions in an otherwise frozen exit market.

IPO Markets Still Closed

PE-backed IPOs are nearly at a standstill:

• Only 18 IPOs globally in Q1

• Lowest quarterly total in five years

• Sectors like consumer, fintech, and biotech remain IPO-inactive

“We’re likely looking at another 60 to 90 days before the IPO market reopens—if at all,” said Keith Campbell of West Monroe.

As a result, GPs are turning to continuation vehicles, minority recaps, and NAV-based facilities to maintain distributions and LP confidence.

What It Means for Investor Relations and LP Management

The drop in exits isn't just a portfolio management issue—it’s an IR challenge. LPs expect liquidity. When distributions stall:

• Confidence in future performance erodes

• GPs risk funding fatigue in future raise cycles

• Emerging managers face even higher scrutiny on return timelines

To retain trust, transparency, forecasting, and investor communications must be best-in-class.

Modern Tools Are Closing the Transparency Gap

Legacy systems like Preqin, PitchBook, and Fintrx offer exit data—but lack the real-time verification LPs now demand. Platforms like Altss are emerging as modern alternatives.

Why IR Teams Are Using Altss:

• 🔍 Monthly-verified OSINT on 5,000+ family offices and institutional LPs

• 📈 Live mandate tracking—know which investors are deploying in real-time

• 🧠 Investor behavior insights—track sentiment, response rates, and news triggers

• 🧾 On-demand enrichment for LP profiles, fund portfolios, and IR workflows

Altss was built by fund managers for fund managers, with over $7B raised across alternative asset strategies. It’s designed to give IR teams a verified edge.

Tactical LP Communication in a Low-Exit Environment

In Q1 2025, IR teams are adapting by:

• 📬 Sending monthly LP updates—flagging NAV movement, sector-specific risks, and expected exit timelines

• 📊 Using Altss or internal dashboards to show pipeline depth vs. execution delay

• 📞 Hosting quarterly LP calls focused on exit strategy scenarios and distribution models under stress

Proactive communication around stalled exits helps maintain goodwill—and can give GPs space to execute creative liquidity solutions without reputational risk.

What Comes Next? Sector-Specific Exit Playbooks

While macro conditions remain unstable, some segments are showing signs of life:

Data-Led LP Targeting for the Second Half of 2025

As exit timelines extend and new fundraising efforts get pushed to late 2025 or 2026, targeting LPs with dry powder and clear mandates becomes essential.

Altss helps GPs match with active LPs by offering:

• Real-time updates on open mandates

• LP activity heatmaps by geography and sector

• Access to smaller emerging LPs overlooked by legacy databases

With many LPs tightening allocations, relevance and timing are more critical than ever.

Stop relying on outdated data. Explore Altss to sharpen your IR strategy and fundraise smarter.

Summary: Exit Bottlenecks Create IR Risk—And Opportunity

Q1 2025 was defined by slow closes, cautious buyers, and deferred liquidity. But the story isn't just about exits—it's about LP expectations, GP reputation, and preparedness.

IR professionals now face three imperatives:

1. Communicate proactively around exit uncertainty

2. Leverage verified LP intelligence to maintain fundraising momentum

3. Plan for creative liquidity solutions while building long-term LP trust

Final Word: Exit Smart, Fundraise Smarter

In today’s climate, successful fund managers are those who combine strong GP-LP communication with data-driven strategies. Exits may be delayed, but LP trust doesn’t have to be.

Modern platforms like Altss give IR teams and emerging GPs the edge to stay ahead—through transparency, verified targeting, and next-generation LP intelligence.

Don’t just wait for the market to recover. Build your next fundraise on real-time data, real relationships, and a system built for today’s private markets.