According to a recent report from Trio Asset Management, firms had $668 billion of private equity assets globally stuck in tail end funds. As of the end of 2023, fund limited partners are likely paying between 3 billion and $13 billion a year in management fees on that $668 billion. Folks, this is value erosion and slow motion Investors are paying for dead capital.
As CFO, your role is to fight that leakage. You need to advocate for fee relief or alternative exit mechanisms. Such as secondaries or continuation vehicles, or risk letting value slowly bleed into the ground. On a portfolio level, you must prove your performance. Things like showing cash returns, pulling operational levers, and carve out readiness that stops the leaks and resets value expectations.
