Exit Strategies in Flux: What’s Most Attractive Now?

Our latest survey of 134 market participants—spanning bankers, consultants, corporate development teams, and PE sponsors—shows just how divided sentiment is in today’s uncertain environment.

The headline finding? There’s no single “go-to” exit path right now. The data reveal an unusually even split across options, underscoring the lack of a clear, dominant route.

• Secondary buyouts (to another sponsor) and strategic trade sales tied for the top spot among all respondents, each at 24%. Both routes reflect a market leaning on sponsor-to-sponsor deal flow and corporate buyers still willing to pay for synergies, even when broader valuations are mixed.
  

• IPO / public markets came in at 24% as well—higher than many might expect given the slowdown—suggesting that some respondents still believe the IPO market could reopen selectively, especially for top-tier growth companies.
  

• Extended holds (18%) and GP-led continuation vehicles (10%) remain smaller slices overall, though both are growing in importance as sponsors look to avoid forced exits.

Looking deeper at the cuts by respondent group, PE sponsors stand out: nearly 4 in 10 (38%) prefer secondary buyouts, far ahead of any other option. This highlights the robust pipeline of dry powder across private equity, where funds are still eager to deploy capital, even if it means buying from fellow sponsors. On the other side, corporate development executives leaned more toward strategic sales (30%), reflecting corporates’ appetite for bolt-on acquisitions in sectors where growth is easier to buy than build.

The Bigger Picture

This fragmented set of preferences reflects a broader truth: exit markets are in transition. IPOs remain choppy, trade buyers are selective, and the rise of continuation funds shows GPs experimenting with creative ways to hold onto prized assets. Rather than one clear trend, we’re in a multi-path era, where sponsors weigh all tools in the toolbox.

The real takeaway? Flexibility is the new norm. For GPs, the ability to pivot between a secondary, a trade sale, or a continuation vehicle—depending on sector, buyer appetite, and capital needs—may matter more than ever in 2025.