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Private equity managers have been hoping for a fundraising revival since 2022, when a sharp rise in interest rates began hindering institutional investors' ability to back new funds. Not only did the revival fail to come, but things have only gotten worse each year since.
Behind the headline numbers is a shift in LP sentiment that shows no sign of reversing. Investors are consolidating relationships and rewarding a handpicked group of managers, which has prompted many others to change tack. The shift carries significant implications not only for PE firms, but also for the people who work within them.
I'm Madeline Shi, and this is The Weekend Pitch. You can reach me at madeline.shi@pitchbook.com or on X @Madelin94615831.
In the US, 2025 marked the year with the fewest private equity fund closes in more than a decade. Just 327 US PE funds reached final closes last year, the lowest count since 2013 and less than one-third the peak of 1089 funds raised in 2022, PitchBook data shows. Together, those vehicles amassed a combined $278 billion, the lowest annual tally since 2020.
Investors have become increasingly picky about manager selection and are concentrating their allocations with a narrower pool of trusted managers. Mega-funds of $5 billion or more accounted for 49.2% of total capital raised for the industry last year, the highest share since the 2008 financial crisis, while vehicles between $100 million and $5 billion only raked in $138.3 billion, making 2025 their worst year since 2018.
Investors have rewarded firms that have shown the ability to produce distributions, rather than just impressive paper returns. |
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European exit mechanics appear to be improving after a slow few years, with median holding periods falling for the first time since 2020. What did the median exit holding time for PE investments in Europe fall to in 2025?
A) 5.7 years
B) 4.2 years
C) 6.6 years
D) 5.8 years
Find your answer at the bottom of The Weekend Pitch! |
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A selection of some of our most-read articles from the past few days.
- CVC Capital Partners agreed to buy Marathon Asset Management for up to $1.2 billion, as the Amsterdam-listed PE giant seeks to expand its footprint in the fast-growing US credit market. Check out why
- Record secondaries deal flow is colliding with a market that still looks oddly undercapitalized, raising the question of whether 2026 can attract enough fresh money to keep PE’s liquidity release valve open. See the charts
- Early-career allocators are pushing for pay transparency. A survey of about 140 junior investment staff finds base salaries cluster at $100,000 to $150,000, with many saying they’re paid below the market rate, spotlighting a negotiation gap. See the results
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“It’s a very difficult, big mismatch between early-stage startups and very mature, hundreds-of-years-old financial institutions.”
– Ruth Foxe Blader, co-founder of Citrine Venture Partners, speaking to PitchBook exclusively about the firm’s new fund focused on the intersection of fintech and AI and the challenges in investing in the industry. |
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Keep an eye out for these insights and research reports coming out this week:
- 2025 Annual Global M&A Report
- January 2026 Global Markets Snapshot
- Q1 2026 Quantitative Perspectives: US Market Insights
- Q4 2025 Fintech VC Trends
- Q4 2025 Climate Tech VC Trends
- Q4 2025 Healthtech Public Comp Sheet and Valuation Guide
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Answer: D.
Median exit holding periods for European PE investments fell from 6.6 years in 2024 to 5.8 years in 2025. You can read more about why this happened and which sectors are seeing an even bigger drop by reading Emily Lai’s latest. |
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This edition of The Weekend Pitch was written by Madeline Shi and Jacob Robbins. It was edited by Rod James and Laura Schinagle.
Were you forwarded The Weekend Pitch? Sign up at pitchbook.com/subscribe. |
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