MIAMI, June 25, 2025 – NYPPEX, a leader in secondary market risk consulting services, announced its 2025 Midyear Outlook for Distributions from Private Capital Funds Worldwide.
Highlights from the NYPPEX report include:
- Distributions are Projected to Remain at Historical Lows of 9% of NAV.
- This compares to record distributions of 31% of NAV in 2021 and the historical annual average of 23% from 2015 to 2020.
- Capital Calls May Again Exceed Distributions, Causing Negative Cash Flow to Investors
- Low Distributions are Driving Secondary Transaction Volume Growth
- More Secondary Market Liquidity is Needed for Investors
“High interest rates are discouraging debt financing for acquisitions” according to NYPPEX. “General partners are forgoing sales of investments and extending holding periods in hopes of better market conditions ahead.”
“This may be a good time to think about allocations to alternative fund strategies.”
To request the NYPPEX report, please email info@nyppex.com.
To access the Alternative Asset Analytics podcast discussion of the NYPPEX report, please click https://open.spotify.com/episode/5PaYqMkjMRdhFHjN4GPo2F
About NYPPEX™
NYPPEX provides secondary market risk consulting services to the private capital funds industry. Since 2004, the NYPPEX QMS has been formally recognized by an Internal Revenue Service private letter ruling. Its QMS can provide a safe-harbor exemption to assist private capital funds remain in compliance with U.S. Treasury Regulation §1.7704-1. Nothing herein is to be construed as a solicitation of securities transactions or investment, legal, or tax advice. NYPPEX is not a broker-dealer. Our market commentaries are designed for U.S. Qualified Purchaser investors as defined by the U.S. Securities and Exchange Commission under the Securities Act of 1933. Non-U.S. residents are subject to country-specific restrictions. © NYPPEX Holdings, LLC. All rights reserved.
Disclaimer
The information set forth in this commentary is estimated and contains forward-looking statements that involve numerous risks and uncertainties. Actual results may differ. The information may change without notice. NYPPEX is not a broker-dealer, and the commentary is not a research report. The information is for educational and informational purposes only and does not constitute investment, legal, or tax advice. Nothing in this commentary is a solicitation of securities which may only be done through a private placement memorandum and in jurisdictions where permissible. Data contained herein is estimated and obtained from what NYPPEX considers to be reliable sources; however, it is incomplete, and projections may change without further notice.