Here are the top 10 takeaways from across the main plenary and the individual breakout sessions at IPEM LP Congress:

#1 Arbitraging economic policy uncertainty is a persistent edge

While uncertainty is clearly detrimental for public market performance, its impact on PE is less straightforward. Deals completed during high policy uncertainty environments have historically delivered better results, up to a 10% difference in annual alpha, compared to deals in periods of less uncertainty. The upshot? The strongest deals get transacted in uncertain times. Indeed, certain GPs have a repeatable “DNA” for arbitraging economic policy uncertainty; a skill which shows up consistently in performance data.

LPs don’t have to view policy shocks as negative for PE returns. The trick is to find skilled managers able to thrive in periods of volatility, who can lean in to the opportunities that arise.

#2 Geopolitical skill…a new chapter in due diligence

Geopolitics is creating complexity in portfolio construction. Investors believe this is now a time to change one’s mindset. It was noted during IPEM LP Congress that traditional geographical exposure may not work anymore for effective diversification. Asia and the Middle East are likely to become more favoured, with LPs remaining open to idiosyncratic opportunities rather than be stymied by binary choices.

Selecting GPs who can understand trade flow, and can decrypt possible spillovers between countries and sectors, will add a new chapter to LPs’ due diligence playbook. The upshot? Geopolitics represents not only a risk but a driver of long-term value creation with LPs optimistically anticipating a great era of innovation.

#3 This is not ‘peak PE’

Despite liquidity pressures, investors broadly reject the idea of “peak private equity” although how investors view what the asset class can offer is likely to change over the coming years; certainly compared to the prior decade. The industry is entering a Darwinistic phase where weaker GPs face attrition and stronger ones adapt through sharper strategies, new investor bases, and innovative financing models.

Secondaries and co-investments are now central to portfolio construction, offering shorter duration and faster ramp-up. This is appealing to newer LPs and those who may find they become under-allocated to private equity if, as expected, distributions start to pick up. At the same time, semi-liquid structures and evergreens are gaining traction, but LPs caution that they can only smooth liquidity, not create it.

Looking ahead, LPs should avoid skipping vintages while also becoming more selective, backing GPs with credible value-creation plans. Far from peaking, private equity continues to expand as new institutional and private wealth capital flows in.

#4 LPs are still experiencing a distribution winter

Private equity is in a prolonged “distribution winter,” with cash returns from buyouts well below the historical 21–23% of NAV since 2021. Distributions have fallen to around 12% to 13%, while volatility of distributions within PE has also increased; something more historically associated with venture capital. However, not all asset classes are affected equally, raising the question of whether industry observers are looking at symptoms rather than underlying causes.

The exit mix is evolving. PE liquidity is increasingly reliant on GP-led secondaries, which have so far accounted for 33% of exits in 2025, compared to 18% in 2024 (full year). While sentiment is cautiously improving as credit spreads tighten and exits re-emerge, LPs are urged to look past short-term liquidity and focus diligence on GPs’ value-creation strategies, particularly around innovation and earnings growth.

#5 Buyout performance is persistent…more so outside the US

Private market performance is cyclical. Recent negative returns should not lead to hasty decisions regarding investment strategies. Historical data reveals that periods of poor performance have often been followed by significant recoveries, suggesting that a long-term, steady investment approach is more beneficial than attempting to time the market based on short-term fluctuations.

Investors are encouraged to maintain a thoughtful perspective on market cycles and to consider historical trends when making future commitments to private equity, rather than trying to time allocations based on short-term signals. Note to LPs: historical data reveals ex-US buyouts have delivered higher risk-adjusted performance than US buyouts!

#6 Underwrite co-investments with realism not optimism

Poll results during the co-investment session highlight continued LP appetite, broadly speaking. A majority of participants expected co-investment deployment and resources to increase (51%) or stay the same (47%), with only 2% anticipating declines. Most LPs reported check sizes of under €10m (64%), while 27% typically deployed €10–25m, and only a small minority (€25m–100m) went larger. The findings underscore the diversity of LP capacity but a shared recognition that co-investments are here to stay. However, the goal should be to underwrite with realism, not optimism given that GPs’ materials are often “sales-oriented” and light on downside risk.

#7 Private credit: Finding good houses in good neighborhoods

Private credit has become mainstream but still depends on sophisticated origination and scale. In a fast growing market, competition is rising to find, metaphorically, good houses in good neighborhoods. After peaking in 2023, when direct lending accounted for 60% of global LBOs valued over $1 billion, YTD 2025 direct lending still accounts for 50% of the market, underscoring its popularity.

And while the thematic backdrop for private credit looks robust, LPs have to continue to be vigilant in respect to manager selection. Debt to equity events have spiked higher since 2023 and expectations are there will be wider dispersions in performance over the next few years. To succeed, LPs should back seasoned managers who have underwritten deals in different credit cycles, have demonstrable workout capabilities and differentiated origination capabilities.

#8 Evergreens risk misaligning incentives…

One of the biggest issues for LPs is style drift when a GP launches an evergreen fund with LPs emphasising during Congress that valuation subjectivity and conflicts of interest, particularly around co-investment allocations, are also of concern. The message was clear: evergreen retail products may accelerate AUM growth at large platforms but risk compressing returns and misaligning incentives. LPs were encouraged to make evergreen structures an LPAC agenda item, scrutinising LPA provisions and conflict management mechanisms with heightened vigilance.

#9 …but evergreens could also help improve asset allocation

Maintaining a consistent allocation to private markets is one of the main challenges for allocators, requiring cost and focus on research and tools to manage overshooting and undershooting allocation limits. LPs view evergreens as a useful liquidity tool to manage this complexity; in particular short-duration products such as bridging loan funds. Moreover, having these funds ranked on Morningstar will create more transparency and GP competition, which allocators feel will benefit them in the long run.

#10 What’s the big deal…

One issue that is keeping some LPs up at night is whether deals are going to keep getting bigger and bigger and what this could mean for future PE performance. Is this simply a function of the amount of dry powder? Or the need for GPs to offer co-investments to all their LPs? There is no single answer. But what was emphasized at IPEM LP Congress was that maintaining a strong alignment between GPs and LPs is key. Doing so will depend on everyone coming together to discuss the issues collectively.

To conclude:

Speaking with one voice will be essential to ensure that evolving dynamics, from retail inflows to governance. ultimately benefit the entire LP community.