Private equity is illiquid by design. Capital is committed until the sponsor sells the company or refinances out the equity.
Typical hold periods
Three to seven years is the common range. Lower middle market independent sponsor deals often run five to eight years because compounding companies are worth holding longer than fund clocks usually permit.
Sources of interim liquidity
Dividend recapitalizations, partial exits to strategic buyers, and secondary sales of LP interests can return capital before the final exit, but none are guaranteed.
Planning
Size your commitment so you can comfortably do without the capital for ten years. Most deals exit sooner; planning for the longest realistic hold protects you from forced selling.
If you are evaluating a transaction in this space and want a candid second look, Solender Capital is happy to compare notes. Reach out through our contact page and share what you are working on.