Private Equity Sales Strategy: Confronting the Maturity Wall Crisis

The year began with cautious optimism for private equity, but the reality of a tougher exit environment has set in. With deal volume down and economic uncertainty lingering, General Partners (GPs) are under mounting pressure to create value and generate liquidity. This challenging landscape makes private equity sales strategy more critical than ever for portfolio success.

One of the most pressing challenges is the looming “maturity wall.” Thousands of funds, especially those launched between 2015 and 2018, are now entering the critical 6–9 year “harvesting stage.” In the U.S. alone, 1,825 PE funds are hitting this phase, with 2019 vintages following close behind. As a result, over half (52%) of active funds are now six years old or older, signaling a wave of asset dispositions on the horizon.

Additionally, Limited Partners (LPs) are increasingly anxious for distributions and the pressure to drive exits is intensifying. Without timely realizations, the closed-end fund model, where proceeds from exits fund new commitments, begins to falter. For many firms, this year will be a defining year for disciplined value creation and strategic execution.

Market Trends & Investment Hurdles: Private Equity Sales Strategy Pressures

Navigating the private equity landscape requires clear-eyed recognition of the challenges emerging from today’s market conditions.

While working closely with PE firms and their portfolio companies, we have identified six critical trends that create pressure on performance and exit timing.

Navigating the private equity landscape requires clear-eyed recognition of the challenges emerging from today’s market conditions.

While working closely with PE firms and their portfolio companies, we have identified six critical trends that create pressure on performance and exit timing.

• Strained Exit Environment:

Trend: After a brief rebound, U.S. PE exits saw a steep decline in Q2, exit value dropped 46.4%, and exit count fell 24.9% quarter-over-quarter, pushing both below pre-pandemic averages.

Challenge: Holding periods are rising. Exited companies are averaging 6–7 years in portfolios (vs. a 5.2-year pre-pandemic median), while the median hold time for current holdings is now the highest since 2011. This growing backlog of aging assets increases pressure to find viable exits and meet LP distribution expectations.

• Decline in Performance:

Trend: 36% of Limited Partners reported their PE investments underperformed benchmarks last year, the highest figure since this data began being tracked in 2018.

Challenge: Performance shortfalls are shaking LP confidence and raising scrutiny on portfolio management, exit timing, and value creation strategies.

• Persistent Uncertainty:

Trend: Elevated recession risk, geopolitical instability, and renewed trade and tariff concerns are creating a climate of uncertainty. B2B sectors are particularly impacted due to margin compression and supply chain volatility.

Challenge: PE firms are facing a “wait-and-see” market where both buyers and sellers hesitate. This suppresses deal flow, complicates exits, and hinders proactive value creation strategies.

• Middle Market Vulnerabilities:

Trend: Roughly 85% of PE-backed businesses are small firms with fewer than 500 employees. These companies often operate in highly competitive markets with lean teams and limited resources.

Challenge: These smaller businesses may lack the internal infrastructure, capital allocation, or strategic resilience to weather prolonged market disruptions, making value creation and leadership support more critical than ever.

• Rise of Continuation Funds:

Trend: As traditional exit routes remain constrained, continuation funds have gained traction. This year’s activity is already outpacing last year’s pace, offering GPs additional time (3–5 years) to generate returns.

Challenge: While they offer flexibility, continuation funds are not a guaranteed solution. They require strong operational plans and execution to justify the extended timeline and provide liquidity options to LPs without eroding trust or returns.

For PE firms, these aren’t just trends, they’re realities that demand action. In an environment where time is tight and exits are delayed, value creation is critical.

The Imperative for Strategic Intervention and Sales-Driven Value Creation

In today's environment, simply "buying well" is no longer enough; success depends on implementing effective private equity sales strategy to proactively create value within existing and newly acquired portfolio companies. PE firms must implement focused strategies to unlock and maximize the potential of their assets, especially as exit opportunities remain limited and the portfolio inventory continues to age.

A comprehensive sales assessment and action plan can help PE firms:

• Quickly identify revenue bottlenecks: Pinpoint issues in leadership, process, or team performance that are limiting top-line growth.

• Prioritize the highest-impact initiatives: Focus resources on the changes that will move the needle fastest, whether that’s go-to-market alignment, sales hiring, or infrastructure upgrades.

• Accelerate time-to-value post-close: Reduce ramp-up time for newly acquired or add-on companies by establishing clear sales strategy and execution plans from day one.

• Strengthen exit positioning: Improve valuation by demonstrating scalable, repeatable sales systems, which are key drivers of buyer confidence.

• Reduce risk in founder-owned or underdeveloped businesses: Build sales discipline and accountability where it’s often been informal or inconsistent.

Accelerate Value, Quickly

The current market demands agility, operational excellence, and a relentless focus on driving organic growth and efficiency within portfolio companies. Private equity sales strategy is no longer a luxury but a fundamental necessity for value creation and key differentiator when exit opportunities are scarce.

That’s why we developed the 100-Day Sales Action Plan™, a proven solution to quickly assess and transform the sales function within portfolio companies.

What’s included:

• A thorough evaluation of the company’s sales foundation, technology, process, and team

• A prioritized sales gaps report

• A focused action plan designed for execution within the first 100 days

This accelerated approach empowers portfolio company CEOs with a clear, repeatable roadmap for revenue growth, while giving PE sponsors the insight and momentum needed to boost enterprise value, accelerate distributions, and prepare for a successful exit.

Let’s Talk

If you’re looking to unlock greater value within your portfolio, we’d welcome the opportunity to talk. We’ll help you unlock hidden value and set the stage for profitable outcomes, quickly.