How an LP and a GP are approaching the slower exit environment
From Private Equity Spotlight by PEI Group
February 20, 2026 · 34 min · Episode 263
About this episode
Yangge Seaman interviews Steven Batchelor about the challenges and strategies in the current slower exit environment for private equity.
In the first episode of PEI Group’s new Commitment Issues podcast, Yangge Seaman of the Children’s Health System of Texas spoke with Hg Capital co-CEO Steven Batchelor about the slow pace of exits and the rise of alternative forms of liquidity that some GPs are using to boost distributions. While exit activity and overall deal activity appear to be picking up this year, as a percentage of total net asset value, distributions are hovering around 11 percent. That’s a similar level of activity to that seen around the global financial crisis, and well below the 20 percent or more associated with more robust years. Seaman talked about what she is looking for when it comes to exit activity among the GPs in her portfolio, and Batchelor gave insight into how Hg approaches exit activity, including its use of a realisation committee to ensure the firm maintains a focus on selling companies. The two also discussed best practices around secondary sales as LPs look for liquidity. Seaman and Batchelor also talked about the evolving LP-GP relationship, and ways both sides can ensure strong partnership through cycles.
People in this episode
Host: Yangge Seaman
Guest: Steven Batchelor
Topics covered
- exit environment
- liquidity
- LP-GP relationship
- distributions
- best practices
- secondary sales
Keywords
- exit activity
- liquidity
- GPs
- LPs
- distributions
- realisation committee
- secondary sales
- private equity
Mentioned in this episode
Organizations: Children’s Health System of Texas, Hg Capital
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