In this chart

Investors are still waiting for their money back. Private-equity distributions have stayed near decade lows for four straight years. Closed-end funds returned only 12% of asset value to investors in 2025, just over half the 20-year average, as funds continue to struggle with exits.  

And the industry is much larger than it was in 2019, so today's lower rate leaves more capital trapped in absolute terms. 

The result? General partners are increasingly using continuation vehicles to create exits. Limited partners are selling stakes on the secondary market to free up cash.