Private equity weathered unexpected headwinds in 2025 to emerge with solid deal numbers, and managers are hopeful for more of the same in the coming months, as investors grow increasingly impatient for fund exits – and distributions – to accelerate this year. The year also found continued pressure from private equity limited partners for liquidity, with distributions back from funds at historic lows coming into this year. However, there are signs investors may be growing suspicious of these vehicles, said Mandee Gruen, a partner and co-chair of the Private Investment Funds practice at Goodwin. In recent side letter negotiations, investors have been seeking ways to "restrict" these vehicles in ways she has not seen previously. "I think it's been overall healthy for the industry," she said. "At the same time, I do think investors are wary of them."
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