The Persistent Private Equity Distribution Drought

April 2026

Private equity distribution rates plummeted in 2022 following a record year for realizations in 2021. Despite a reversal of many of the headwinds from four years ago, including a significant rally in public equities and a partial reduction in short-term interest rates, the distribution drought continues to this day. Unlike prior periods of low distribution rates, today’s lack of private equity liquidity does not correspond with an economic recession and thus there is no clear path back to “normal” like those that previously tracked a broader economic recovery.