Turnkey strategies for resolving private market portfolios

2009

Years
0

Median private equity hold period

2025

Years
0

Median hold period for private equity funds

2009

Years
0

2025

Years
0

One Partner, Three Options

LP Advisory

Represent LPAC or group of LPs in an active monitoring/management role

LP Benefits
  •  Hold GPs accountable to fiduciary duties
  • Reduce free drag and misaligned incentives
  • Strengthen LP negotiating position

GP Replacement

Full fiduciary role as GP

LP Benefits
  • Relieve LPs of burden of managing legacy funds/GPs
  • Maximize value for LPs
  • Active portfolio management
  • Target resolution typically within 24 to 36 months

Co-Management

Upwelling partners with the existing GP to co-manage fund

LP Benefits
  • Oversight support to drive LP objectives
  • Investment monitoring, analysis and governance

Why LPs Must Take Early Action

Private capital investments that have failed to deliver performance by year nine tend to underperform thereafter, no matter how long they are held. LPs that fail to take action before the ninth year of a fund’s life face meaningful value erosion and opportunity cost.

Early Action is Critical
4th Quartile vs. Bottom Decile TVPI Performance – All Buyout Funds (Vintage 2004-2024)

4th quartile Bottom decile TVPI max
0.8x1.0x1.2x1.4x1.6x Action window 123456789101112131415161718Year TVPI 0.3x 0.5x1.50x1.10x1.30x0.83x
Year 17
4th quartile: 1.36x
Bottom decile: 0.84x
Gap: 0.52x

24%

decline in bottom decile fund value from year 6 to 18

Years 6-9

critical intervention window to preserve LP value

0.5x

TVPI gap between the two groups by year 9, up from 0.3x at year 6

Upwelling Research using PitchBook data - "No Country for Old Funds" (2025)

Upwelling’s Joncarlo Mark explains why investors should probably seek to realign underperforming funds before it’s too late.

Why Upwelling is the Right Partner

The principals of Upwelling capital have long standing experience in private markets, particularly related to helping limited partners achieve their strategic objectives especially in GP sensitive situations.
Upwelling’s principals have a combined 100+ years of private markets experience at organizations including JP Morgan, BNP Paribas, CalPERS, ILPA, Colorado PERA and KKR Credit.