Private Equity: Fundraising, Exits and Secondaries — 2026-09-08
CVC Capital Partners finalized a landmark $10 billion secondaries fund, signaling continued strength in the secondary market as it approaches a record $250 billion annual volume. Meanwhile, dividend recapitalizations have shrunk by 40% year-over-year due to exit market uncertainty, and institutional investors are increasingly allocating to "evergreen" private market funds from Blackstone and KKR.
Private Equity: Fundraising, Exits and Secondaries — 2026-09-08
Top developments
CVC Finalizes $10 Billion Secondaries Fund
On or around September 6, 2026, CVC Capital Partners announced the final close of its sixth secondaries fund (SOF VI) at $10 billion. This represents the largest fund of its kind to date and underscores the robust demand for liquidity in the private equity sector. The global secondaries market is currently tracking toward a record $250 billion in volume for the year, driven by LPs seeking liquidity and GPs managing portfolio duration.
Dividend Recaps Down 40% Amid Exit Uncertainty
Recent data indicates that capital raised for dividend recapitalizations has decreased by 40% year-over-year in 2026. This sharp decline reflects fading optimism about the exit environment, as sponsors hold assets longer rather than leveraging them up for immediate payouts. While this reduces immediate leverage risk, it highlights the persistent challenge of realizing returns through traditional exits like IPOs or strategic sales.
Institutions Pivot to Evergreen Funds
Major institutional investors are quietly increasing allocations to "evergreen" private market funds originally designed for high-net-worth individuals by Blackstone (BX) and KKR (KKR). These funds offer continuous capital access at set intervals, providing a hybrid between traditional closed-end PE structures and liquid public markets. This shift suggests large allocators are seeking more flexible liquidity terms amidst the current exit backlog.
Sponsors Use Buy-and-Build to Navigate Stalled Exits
In a stalled exit market, sponsors are increasingly consolidating their way out via buy-and-build strategies. According to recent commentary from Schroders Capital, consolidation is doing "double duty" by creating scale and value while waiting for better exit windows. This trend is particularly evident in Europe, where AI adoption remains more talk than action, forcing traditional operational improvements and M&A to drive value creation.
Local view
South Korea: Infrastructure AI Focus Korean media reports that private equity capital is heavily concentrating on AI infrastructure deals, specifically data centers and energy assets. Asia Economy notes that these infrastructure projects are the core of this year's PEF deals, reflecting a global trend toward digital infrastructure investment. Additionally, Newstop Korea highlights that despite increased announcements from pension funds and policy banks, domestic GPs face tougher fundraising conditions with stricter LP screening processes.
Japan: Record Delistings and Competition Nikkei reports that delistings on the Tokyo Stock Exchange hit a record high for the third consecutive year, as companies seek growth in private markets. The report also flags emerging concerns about over-competition among funds bidding for Japanese assets, which could compress returns for less disciplined buyers.
Context & numbers
- Secondaries Volume: The global PE secondaries market is tracking toward $250 billion in 2026, a record level.
- Continuation Vehicles: GP-led continuation vehicles now represent approximately 48% of total secondary market volume and 86% of all GP-led dollar volume.
- Unsold Assets: Private equity firms are currently holding 33,575 unsold businesses, unable to exit at required values despite active deal-making (Note: Article published Aug 10, but provides critical context for current exit stats).
- Redemption Caps: Blackstone capped redemptions from its flagship private credit fund (BCRED) at 5% for the second consecutive quarter, reflecting ongoing pressure in the $1.8 trillion private credit market.
On the radar
- Asian Buyout Momentum: Korean and Japanese funds are increasingly looking to Japan as a "land of opportunity" for M&A, with Korean PEFs accelerating their entry into the Japanese market.
- AI Infrastructure Deals: Watch for further clustering of PE capital into data center and energy infrastructure in Asia, as reported by local Korean financial outlets.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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