Why GP-Stake Deals are Surging: Liquidity, Leadership & Valuation Pressures

The private equity industry is entering a significant structural shift in how general partners (GPs) secure liquidity, underpinned by growing pressure to address capital constraints amid a challenging exit environment. A recent survey by law firm Dechert, covering senior executives at established private equity firms across North America, Europe & Middle East (EMEA), and Asia-Pacific (APAC), found that 77 % of participants intend to sell a minority GP stake within the next two years—more than double last year’s figure of ~34 %. GP-stake deal volume through October 2025 totalled US$3.5 billion, narrowly trailing the all‐time high of US$3.6 billion set in 2015, suggesting the market is poised to set new records.

Several drivers are converging to make GP-stake sales more attractive for GPs. First, many firms face liquidity pressures, with fewer exits via trad-windows such as IPOs, strategic sales, or M&A. Second, aging founders and leadership transitions are pushing firms toward structuring sales to address succession planning and retention of key talent. Third, GPs are being asked by limited partners (LPs) to commit more capital into new funds, increasing the need for cash. Fourth, expansion into new strategies or scaling operations demands external capital, prompting some GPs to accept minority capital in exchange for dilution.

While the trend is broad—North America, EMEA, and especially APAC firms all report high intention levels—there is significant heterogeneity in motivations. In EMEA, working capital and talent retention dominate; in North America, liquidity for existing stakeholders and succession; in APAC, firms focus on accessing strategic advisory, scaling, and expansion. Moreover, most GP‐stake divestitures planned are of minority size: 59 % of those considering a stake sale aim for under 25 % ownership transfer.

However, multiple risks and constraints loom. Buyer capacity is finite, and not all GPs will be able to negotiate favorable terms, particularly mid-tier firms without a strong performance track record. Minority stake sales also reduce autonomy and may compress GP fee and profit income. Valuations pose another challenge: capturing acceptable value will likely require creative deal structuring—such as earnouts, deferred considerations, or CVs—to bridge valuation gaps between sellers’ expectations and buyers’ willingness.

Strategically, this movement opens opportunities for buyers with dedicated GP-stake infrastructure: firms like Blue Owl Capital, Blackstone, Goldman Sachs’ Petershill Partners, and Hunter Point Capital are already prominent players in GP‐stake transactions. For GPs, selling GP stakes could provide flexibility—funding growth, succession, or reputation—or risk, in terms of governance, dilution, and investor relations. For the broader market, this shift indicates a maturing private equity ecosystem where GP stake sales are becoming standard tools for liquidity, not exceptions.

Open questions include: how much capital is available in the GP-stake investor base to satisfy demand; whether pricing terms will widen or compress as seller competition increases; how LPs will react to potential conflicts of interest or governance implications; and to what degree this trend will accelerate across non-top-tier GPs.