U.S. PE Funds Hit Record $348.5B in 10+ Year Unrealized Assets as LPs Shift Focus to Cash Distribution

According to PitchBook data released on July 27, U.S. buyout funds with 10 or more years since establishment held a record $348.5 billion in net asset value (NAV) by the end of 2025, driven by delayed exits amid rising interest rates and valuation compression. The buildup of aging, unsold assets reflects prolonged exit challenges and increased reliance on continuation funds—vehicles that extend holding periods while offering LPs a partial cash return opportunity.

LP evaluation priorities are shifting from internal rate of return (IRR) toward actual cash distribution metrics. McKinsey data showed buyout funds returned approximately 7% in 2025, trailing the S&P 500's 18% and MSCI World's 22% gains. In response, institutional investors including South Korea's National Pension Service (NPS) are emphasizing actual realized distributions and Distributed to Paid-In (DPI) ratios over paper valuations when assessing fund manager performance.