GP-Stake Divestitures Trending Upward in the Buyout Market

December 02, 2025

Key Takeaways

77% of survey participants plan to make a GP-stake divestiture in the next 24 months – double the proportion that had these plans a year ago.

Motivations vary by region but center on liquidity, succession and growth: EMEA prioritizes working capital/talent retention (59%); North America focuses on founder liquidity (50%) and succession (47%) while APAC seeks strategic advisory and scaling (50% each).

An increase in GP-stake divestitures – where managers sell minority stakes in their general partnerships to third-party investors – has been a noticeable trend in the buyout market, with demand for liquidity and industry maturity encouraging GPs to explore staking transactions. Our 2026 Global Private Equity Outlook survey findings show that 77% of respondents plan to make a GP-stake divestiture in the next 24 months.

The jump in planned GP-stake divestitures is particularly significant in APAC, with 90% of this group making such plans compared to just 15% in 2024. A large majority of North American GPs (71%) and EMEA GPs (77%) are also planning a GP-stake divestiture in the next 24 months.

The early model in the PE industry was to operate as a partner-owned business and raise money from trusted LPs. That model still works, but rising interest in GP-stake divestitures shows that the market is maturing. At a time where it is harder to raise funds and LPs are asking for bigger GP commitments, stake sale proceeds can help GPs to finance their fund commitments. Some GP-stake investors will also be able to make commitments to future funds, giving GPs a lead investor the next time a fund is launched.” Sabina Comis, global co-managing partner of Dechert

Capital raised from GP-stake deals can be used to achieve a variety of strategic objectives, ranging from financing succession and GP fund commitments to recruitment and new strategy launches.

The survey shows the rationales for GP-stake deals varying by region.

Of those planning to make a GP-stake divestiture in the next 24 months, 59% of the EMEA-based respondents say working capital and talent retention are primary motivations.

Meanwhile, those based in North America are more likely to cite founder/stakeholder liquidity (50%) and/or the facilitation of succession planning (47%) as drivers.

“There is a generational change in PE. Founders are aging, and firms require a liquidity solution to realize the equity these founders hold in their firms in order to facilitate succession,” Comis says. “With the U.S. being the most mature market and, thus, ahead of the curve,” Bolsinger adds.

A UK-based dealmaker adds: “We are planning a GP-stake divestiture to improve succession planning. Firms need to have the right leaders in place.”

APAC-based respondents more commonly say their motivations for GP-stake divestitures in the next 24 months will be securing access to strategic advisory services or fueling growth, with each option selected by 50%. The data bears out these value-creation expectations, with research by academics at Cornell University and the University of Florida showing that among firms that have completed stake sales, AUM increased by 84% in the first 10 years after transactions took place. GP-stakes investors often also have primary investment programs within their organizations and can also help dealmaker-led firms to manage the transition from smaller, partner-led organizations into large asset managers operating at scale.

Most GPs, however, want to retain control of the franchises and only sell down minority stakes. Among those planning to make a GP-stake divestiture in the next 24 months, 59% are considering a divestiture of under 25%.

Footnotes

The preceding article is an excerpt from the 2026 Global Private Equity Outlook report, an annual publication that uses qualitative and quantitative findings to look at current PE industry trends and views on where the market is heading in 2026.