Private Equity 101

Executive Summary The European Commission is exploring reforms to improve liquidity in private markets as part of its Savings and Investments Union agenda. Core issue: Private equity investors face limited exit options due to challenging IPO markets, fragmented secondary sales, limited valuation transparency, and overall illiquidity. Key proposal: Create a regulated, intermittent secondary trading platform for private company shares—essentially a private-company marketplace that opens during scheduled trading windows rather than operating continuously. Potential benefits for PE funds: Faster and more efficient exits Broader pool of potential buyers Improved price discovery and valuation transparency Reduced dependence on IPOs and M&A transactions Additional liquidity pathway for portfolio companies Consultation focus areas: Barriers to PE exits Inefficiencies in current exit routes Design of private-share trading markets Disclosure and investor-protection requirements Whether companies should be allowed to raise new capital on such platforms Why it matters: If implemented, these reforms could fundamentally improve how private equity investments are exited and valued, making private markets more attractive to institutional investors while bringing elements of public-market infrastructure into private markets. For PE fund administrators, this could represent one of the most important market-structure developments in Europe in recent years.

WEF_The_Future_of_Venture_Capital_2026.pdf https://reports.weforum.org/docs/WEF_The_Future_of_Venture_Capital_2026.pdf

Read the Report https://www.goldmansachs.com/pdfs/insights/goldman-sachs-research/cracks-in-private-credit/TOM_private%20credit_Redacted.pdf

The Quiet Risk in Private Equity: NAV Squeezing and Performance Illusions https://www.linkedin.com/pulse/quiet-risk-private-equity-nav-squeezing-performance-illusions-mohs-eez1e?utm_source=share&utm_medium=member_android&utm_campaign=share_via

Private equity in transition: from distribution drought to selective recovery | Allianz https://www.allianz.com/en/economic_research/insights/publications/specials_fmo/260220-private-equity.html