In recent years, private equity has undergone a quiet but profound change. After a period marked by quick exits, abundant liquidity, and high valuations, the market entered a new phase in which time once again became a key variable. Not because value has disappeared, but because today the way to capture it is different.

In this new context, rather than a race to exit, the focus has shifted to active investment management, the quality of assets, and the ability to generate liquidity without depending on specific market windows. 

A slower but more orderly environment 

The current scenario is marked by a slower pace of IPOs and large mergers and acquisitions. This has extended investment periods and meant that a significant portion of the value generated by funds remains reflected in valuations rather than in actual cash flows for investors. 

Far from being a negative sign, this environment has driven greater sophistication in portfolio management. greater sophistication in portfolio management. Today, investors are actively seeking: 

• organize exhibitions,
• adjust the duration of your investments,
• and prioritize companies with solid fundamentals and operational visibility. 

In this process, the secondary market has gone from being an exceptional solution to becoming a structural tool within private equity. 

Liquidity without waiting for the "perfect moment" 

One of the metrics that has gained the most relevance in this cycle is DPI (Distributions to Paid-In), which measures how much of the capital contributed by investors has already been returned in cash. 

In recent years, this indicator has advanced more slowly than the historical average. The reason has not been lower value creation, but fewer exit events. In practice, this means that a significant portion of the value remains "on paper,", waiting to materialize. 

In this context, the secondary market plays a key role: 

• allows you to transform accumulated value into liquidity, without waiting for a traditional sale; 

• offers orderly alternatives to extend the life of attractive assets; 

• contribute to generating a more stable and predictable return trajectory over time. 

Thus, the focus shifts from solely maximizing short-term returns to also focusing on managing return times effectively. 

What to expect going forward 

Looking ahead to the coming quarters, the market consensus points to a process of value creation that rewards selection, price discipline, and the ability to manage complex portfolios in different market scenarios. 

In this new cycle, global private equity strategies with access to secondary markets, co-investments, and adequate diversification by vintage, sector, and geography appear better positioned to offer greater control over liquidity and duration, without losing exposure to quality assets. 

The private equity market is transitioning toward a stage that is more focused on time, liquidity, and quality management. 

The secondary market has emerged as a key element in navigating this scenario, allowing a shift from passive patience to a more active and orderly strategy. And when this logic is applied to well-diversified global portfolios, the result is a more predictable, resilient path focused on long-term value creation.  

DISCLAIMER.

Juan Manuel Alessandrini  
Senior Analyst, International Funds, Fynsa AGF