From left: Scottie Wardell (Apollo Global Management), Paige Weiser (TPG), Ros L'Esperance (۶Ƶ)

Navigating a new era of exits

Private equity (PE) investors are facing a pivotal moment. Amid macroeconomic uncertainty, valuation mismatches, and a sluggish IPO market, traditional exit routes are no longer the default. The flywheel that once powered the PE lifecycle, acquisition, value creation, and IPO, has slowed, prompting a shift in strategy. At the 2025 ۶Ƶ Women in Tech Summit, industry leaders explored how investors are adapting to unlock value in a dynamic market.

Exits are now a central part of the investment thesis from day one. Private equity firms are becoming more systematic and proactive in planning for exits to ensure a successful outcome.

Beyond the IPO: Creative paths to liquidity

While IPOs remain a goal for many investors and companies alike, they are no longer the only, or even in some cases the most viable option. As a result, private equity firms are increasingly turning to full sales or partial exits that provide liquidity without requiring a clean break.

Scottie Wardell, Partner, Apollo Global Management

We’re seeing a lot of non-traditional partial exits because investors need liquidity and are navigating a significant backlog of long-dated portfolio companies. I think that dynamic will remain for a while, especially as wide bid-ask spreads persist.

- Scottie Wardell, Partner, Apollo Global Management

Structured buyouts and hybrid capital solutions are gaining traction as another creative solution. These deals often involve bespoke securities that blend debt and equity features, offering downside protection for investors while preserving upside for sellers.

The evolving PE flywheel

The traditional PE flywheel, buy, grow, exit, has evolved. Today’s private equity firms are navigating longer holding periods, valuation mismatches, and heightened scrutiny from limited partners (LPs). Fundraising cycles have contracted, and many investors are back in the fundraising market before delivering meaningful Distributed to Paid in Capital (DPI). This has led to a renewed focus on co-investment and institutionalized exit committees.

By offering LPs fee-free, carry-free access to proprietary deal flow, private equity is incentivizing continued commitments while managing expectations around returns.

“In this market, it’s easier to deploy capital than it is to return. The result, from a fundraising perspective is a laser focus on the exit," said Paige Weiser, Principal, TPG.

Paige Weiser, Principal, TPG
Ros L’Esperance, Executive Vice Chairman, Investment Bank, ۶Ƶ

Breaking the backlog

What will it take to ease the buildup of aging portfolio companies?

“We’re seeing a fundamental rethinking of how and when value is realized,” said Ros L’Esperance, Executive Vice Chairman, Investment Bank, ۶Ƶ. “The firms that succeed will be those that embrace flexibility and innovation in their capital strategies.”

Panelists noted time and market normalization are key.

Mergers between “good but not great” companies, acceptance of discounted valuations, and a willingness to embrace creative structures will all play a role.

Investors are also closely watching the first green shoots appearing in the IPO market and how those companies are trading in their few weeks post IPO. As more deals get done, momentum will build, and the flywheel will begin to turn again.

The private equity landscape is undergoing a structural shift. Investors are rethinking exits, embracing creativity, and adapting to a market where liquidity is harder to achieve, but not impossible. Whether through structured buyouts or hybrid capital, the goal remains the same: unlocking value in a dynamic and demanding environment.