Bonaccord Sees Accelerating Liquidity in GP Stakes Market

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A new white paper from Bonaccord Capital Partners indicates that liquidity in GP stakes is increasing as funds approach typical monetization windows. The report cites a sharp rise in both single-investment and portfolio-level liquidity events, with 65% of all single-investment liquidity events and 44% of portfolio-level liquidity events occurring since 2024. Bonaccord attributes this trend to the relative youth of the GP stakes market, as many funds have only recently begun to reach the typical 10-year monetization horizon.

Why it matters

The growing liquidity in the GP stakes market reflects the maturation of this investment strategy, which has seen a ninefold increase in cumulative capital commitments since 2016. As more funds reach the monetization stage, investors are gaining additional options to realize value, including sponsor-to-sponsor deals, minority stake sales, and participation in control transactions.

The details

According to Bonaccord's report, the rise in liquidity events is primarily driven by timing rather than structural changes. Many private markets-focused GP stakes funds remain relatively young, with a weighted average final close vintage of around 2021. As these funds approach the typical 10-year monetization horizon, more investments are becoming eligible for exit. One of the earliest private markets-focused GP stakes funds, Blue Owl Capital's GPS III vehicle, is now nearing its 10-year mark, positioning some of the earliest investments in the strategy for exits.

• Since 2024, 65% of all single-investment liquidity events have taken place.
• Since 2024, 44% of portfolio-level liquidity events have occurred.
• Blue Owl Capital's GPS III vehicle, one of the earliest private markets-focused GP stakes funds, is now nearing its 10-year mark.