Jasmin Capital is pleased to share its latest whitepaper, “LP Perspectives: Drop in Distribution Calls for Bespoke LP-Led Initiatives”, offering a comprehensive analysis of the evolution of the liquidity in the private markets and strategic responses available to LPs facing liquidity constraints.
Highlights from the whitepaper:
- Distribution slowdown: Since Fall 2022, LPs have faced three consecutive years of historically low distribution levels, with DPI ratios for recent vintages (2019–2022) significantly underperforming compared to older cohorts
- Liquidity gap: The gap between distributed and called capital has turned negative in four of the last six years, peaking at over $110 billion in 2023, creating pressure on LPs to finance new primary commitments
- No major recovery in distributions anticipated for 2025: Although a modest rebound was observed in 2024 and initial expectations pointed to a revitalization of the M&A market in 2025, persistent geopolitical tensions and U.S. tariff policies have continued to weigh on transaction activity, suggesting another subdued year in terms of distributions
- Secondary market as a strategic lever: LPs are increasingly leveraging secondary transactions not only for liquidity but also for portfolio optimization—rebalancing exposure, crystallizing returns, and financing new investments