By Emmanuelle Dotezac, Director, Funds
I recently had the honour of attending the ILPA Summit Europe 2025, held in London on 28-30 April. This event provided an invaluable platform for general partners (GPs) and limited partners (LPs) to connect, share insights, and discuss current trends shaping the private equity landscape.
As we navigate through a rapidly evolving market, it’s clear that alignment between LPs and GPs is more crucial than ever. Here, I share my three key takeaways from the summit.
1. Navigating liquidity challenges
A significant theme throughout the summit was the prevailing concerns regarding liquidity in the market. With distributions at historic lows, LPs are becoming more focused on near-term cash flows. The anticipated uptick in mergers and acquisitions (M&A) hasn’t quite materialised, leading to portfolio companies being held for longer than expected. LPs are increasingly vocal about their desire for distributions, with Distributed to Paid-In (DPI) ratios now more critical than ever in realising some liquidity. This is not just about providing returns; it allows LPs to reinvest in upcoming vintages. During discussions, it became clear that LPs prefer traditional exit routes, particularly trade sales and private equity to private equity (PE to PE) M&A. The appetite for initial public offerings (IPOs) has waned due to market volatility, heightening the need for dependable exit strategies.
2. The rise of direct and co-investments
Another focal point of the summit was the shift in capital allocation strategies. LPs are becoming more selective, placing greater emphasis on proven track records and investment strategies that align with their own goals. However, the appetite for direct and co-investments remains robust. Direct investments are increasingly appealing to LPs as they not only allow for greater involvement in the investment process but also serve to reduce management fees associated with traditional fund structures. The ability to invest alongside fund managers enables LPs to forge closer partnerships, fostering stronger relationships and alignment of interests. This trend suggests that LPs are not merely passive investors; they are eager to take an active role in optimising their investment outcomes.
3. Demand for transparency and technological advancements
Finally, transparency emerged as a critical demand from LPs during the summit. In today’s evolving investment climate, LPs are seeking more clarity and real-time access to information. Technology is stepping in to fill these gaps, with digital tools gaining momentum in areas such as investment due diligence and operational efficiencies. LPs are increasingly leveraging technology to capture key performance indicators (KPIs), track investment returns, and monitor environmental, social and governance (ESG) metrics. This greater reliance on technology not only streamlines operations but also enhances trust between LPs and GPs. As transparency becomes a non-negotiable requirement, technology will continue to play a pivotal role in bridging information gaps and fostering robust partnerships.
The ILPA Summit reinforced that both LPs and GPs must prioritise alignment and communicate more effectively as they navigate the challenges posed by the current market landscape. With liquidity concerns, a push for co-investments, and a demand for transparency through technological advancements, the private equity sector is evolving rapidly. As these trends solidify, it’s imperative for industry participants to adapt and collaborate to ensure sustainable growth and mutual success. The insights gained from this summit will undoubtedly influence how we approach investment strategies moving forward.
