Trump’s tariff turmoil triggers worst run for private equity since 2008

Core Insights - The private equity industry is experiencing its worst performance since the financial crisis, with returns to investors declining for four consecutive years [2][5]. Distribution and Returns - Private equity firms distributed 14% of their net asset value to investors in 2025, consistent with the previous year, and significantly down from 32% in 2021 [2]. - This decline in returns has persisted longer than after the 2008 financial crisis, where distributions rebounded after two years [2]. Market Activity - The total number of private equity sales decreased by 2% to 1,570 last year [4]. - The value of exits increased by 47% to $717 billion, driven by major sales, with seven large exits accounting for 20% of this total [6]. Investment Holding Period - Private equity funds are now holding investments for approximately seven years before exiting, an increase from five to six years between 2010 and 2021 [7]. Continuation Vehicles - The transaction value of continuation vehicles rose by 62% last year and has increased by 37% annually since 2022, although they still represent less than 10% of total private equity exits [8]. - Interest in continuation vehicles is growing, with 40% of industry respondents indicating plans to explore these options in the next one to two years [8].