The private equity industry’s liquidity woes are set to continue, with research giant MSCI saying early indications suggest distributions will decrease in the second quarter.
The index provider said that private equity distributions in the first quarter of the year were just 8.7% of valuation, significantly below the 2015 to 2019 average rate of 23.5% and a decline from the 11.6% seen in Q4 of 2023.
‘With the first quarter behind us, asset owners will now be looking to the ongoing second quarter to see if distributions can rebound on an upward trajectory as at the end of 2023 or whether the start of the year was a harbinger of continued sluggishness,’ MSCI noted.