The amount of capital returned to investors from closed-end funds in private markets stayed subdued in 2025, with distribution rates well below historical norms. In buyout, exits that did get done in the year showed stronger pricing, however, suggesting quality assets still attracted buyers.
This report examines data on more than 15,000 closed-end funds globally to provide insights into private-capital cash flows and valuations, as well as dry powder and performance for Q4 and full-year 2025.
Highlights:
- Venture capital was the standout performer in 2025, rebounding to a double-digit annual return thanks partly to improving sentiment around late-stage company valuations. Buyout was more muted.
- Credit delivered another year of steady returns. Investors’ eyes likely now turn to results for Q1 2026 amid challenges for evergreen funds and concerns about software investments.
- Contributions to funds and distributions to investors moved into balance in 2025, though the distribution rate of 13% was unimproved from 2024.
