Private Equity Glossary

Exit Strategy

A fund’s intended method for liquidating its holdings while achieving the maximum possible return. These strategies depend on the exit climates including market conditions and industry trends. Exit strategies can include selling or distributing the portfolio company’s shares after an initial public offering (IPO), a sale of the portfolio company or a recapitalization.

Exiting climates: The conditions that influence the viability and attractiveness of various exit strategies.

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