(STILL) NO EXITS FOR PRIVATE CAPITAL

Summary from the TLDR Founders newsletter

Private investors sit on mountains of paper wealth with few exits as PE acquisitions hit lows while capital calls outpace distributions. The gap between calls and distributions approaches ZIRP-era levels, creating negative cash flow for LPs. Despite liquidity issues, panic remains absent—just a gap between valuations and returns. The message stands clear: the "grow at all costs" playbook fails in a world where capital costs more, investors need returns, and buyers demand profit before paying prices that deliver investor returns.