Private equity performance remained modest in 2025, although signs of both returns and improving exit dynamics are beginning to emerge. Although low compared to historical levels, distribution yields hit a four-year high on the year. Importantly, distributions have outpaced contributions over the last 18 months. Areas that investors should consider focusing on are the lower middle market and European opportunities within buyout, and smaller, specialized transactions in the secondaries market. Read the 2026 Private Equity Strategy Outlook to learn more.
