If the last two years have proven anything in private equity, it’s that navigating uncharted waters has become the norm. Exit opportunities have dried up, yet the pressure to deliver returns hasn’t faded.
We have seen this first-hand: the days when a straightforward asset sale could generate liquidity feel like a distant memory. Now, we are adapting, maneuvering to create cash flow through more creative means – continuation funds, dividend recaps, asset value loans – anything to keep things moving. But let’s be clear, these are stopgaps, not long-term solutions.
A client within the industrials nailed the initial growth plan – expansion into new markets was a success. But after four years, they hit a wall. Their initial roadmap was exhausted. We had to dig deep, looking beyond immediate wins and into sustainable strategies that would set the stage for future owners. That meant investing in GTM capabilities and rethinking the product mix.
Predicting exactly when exit markets will stabilise may be a gamble, but there are steps you can take now to build momentum for when they do. Preparing your portfolio companies for that moment starts with asking some tough but essential questions.
→ What story (‘narrative’) will you be ready to tell potential buyers in the next 12–24 months, one that will genuinely capture their interest?
→ How much of that narrative is solid enough to present right now?
→ Does your strategy still hold up, or is it time to map out the next phase of growth?
→ Where are you seeing real traction, and where do you still need proof of concept? Are your key resources and talent aligned with the most pressing priorities?
→ Have any new risks surfaced that could give buyers pause in today’s wary market?
Are you ready to set up for a strong exit, or hoping the market will make up the difference?