Private equity portfolios typically would see about 25% of investments being harvested, realizing cash each year to fund new investments or distributions, Rocha Scaff said. The rate has dropped to 12% to 13% in the past three years and it’s likely to be the case for 2025, she said. It also means the average holding period has increased to six years on average, from about four years, she added.
Private equity firms are likely to see muted exit activity this year on the back of increasing uncertainty over the US economy, according to Joana Rocha Scaff, head of European private equity at Neuberger Berman.
“We’ve seen the activity decelerate and I think investors at the moment are, frankly, contending themselves perhaps going into the fourth year of muted exit activity in their portfolios,” Rocha Scaff said in a Bloomberg TV interview at the SuperReturn event in Berlin on Wednesday.
