Will Net Cash Flows Decline For PE Fund Investors?

Will Net Cash Flows Decline For PE Fund Investors? by Garrett James Black, PitchBook

PE Fund Investors

Since 2010, there has been a markedly recurrent yearly increase in total distributions to investors in private equity funds. This increase, as well as relatively plateaued contributions, has produced a significantly positive net cash flow.

Through the first half of 2015, net cash flow has trended down somewhat, likely due to PE fund managers calling down substantial sums of capital in an environment marked by heated multiples. Distributions have also remained strong but it’s probable that the heights of 2013 and 2014 will remain above final 2015 numbers.

One reason...