Key Takeaways
- • German digital wealth manager Liqid closed its third venture capital fund of funds at over €100 million, demonstrating institutional capital appetite for structured VC investment vehicles despite broader fundraising headwinds.
- • Partners Group Private Equity generated significant exits in a subdued transaction market, indicating selective sellers with strong portfolio companies are executing sales despite market constraints that have suppressed overall PE transaction volumes.
- • Deutsche Bank-owned Morgan Grenfell Private Equity divested four portfolio companies to Vision Capital in a Goldman Sachs-backed transaction, highlighting secondary market liquidity mechanisms within the European PE ecosystem.
- • MetLife Investment Management closed a $1.6 billion private equity portfolio sale, with the acquirer purchasing approximately $1.2 billion in PE and venture capital assets with combined funded and unfunded commitments, reflecting institutional capital repositioning in alternative assets.
- • Alternative asset managers with €3+ billion AUM (such as GLL) are maintaining active investment and exit operations across Western Europe, Central Eastern Europe, and North American markets despite elevated exit market friction.
Summary
German digital wealth manager Liqid successfully raised over €100 million at the final close of its third venture capital fund of funds, signaling sustained institutional demand for curated venture capital exposure despite challenging fundraising conditions across the broader alternative investment sector. The fund of funds structure allows institutional investors to gain diversified exposure to multiple underlying VC managers without direct manager selection burden, a strategic positioning particularly valuable when primary fundraising markets remain constrained.
The transaction activity among established PE managers underscores a bifurcated exit environment in 2025–2026. Partners Group Private Equity executed meaningful portfolio company sales in an otherwise sluggish transaction market, while Deutsche Bank's Morgan Grenfell Private Equity sold four portfolio companies to Vision Capital with Goldman Sachs financing support. These selective exits by well-capitalized managers with quality assets demonstrate that transaction velocity remains suppressed for many sellers, yet managers with differentiated portfolio companies and flexible exit timelines continue to achieve exits. Industry observers expect over $100 billion in PE portfolio sales in 2025, up from $53 billion in 2019, reflecting accumulated dry powder and maturation pressures.
MetLife Investment Management's $1.6 billion private equity portfolio disposition—in which the acquirer purchased $1.2 billion in PE and VC assets with total funded and unfunded commitments of $1.2 billion—exemplifies the broader institutional trend of portfolio optimization and alternative asset rebalancing. This follows MetLife's general account holding $14 billion in private equity assets as of 2021, indicating substantial capital redeployment.
Mid-sized European alternative managers maintaining €3+ billion in AUM, including GLL with investments spanning Western Europe, Central Eastern Europe, and the United States, continue both new commitments and strategic exits despite market friction. These managers remain active participants in a selective exit environment, benefiting from established track records and diversified geographic positioning.
The transaction activity among established PE managers underscores a bifurcated exit environment in 2025–2026. Partners Group Private Equity executed meaningful portfolio company sales in an otherwise sluggish transaction market, while Deutsche Bank's Morgan Grenfell Private Equity sold four portfolio companies to Vision Capital with Goldman Sachs financing support. These selective exits by well-capitalized managers with quality assets demonstrate that transaction velocity remains suppressed for many sellers, yet managers with differentiated portfolio companies and flexible exit timelines continue to achieve exits. Industry observers expect over $100 billion in PE portfolio sales in 2025, up from $53 billion in 2019, reflecting accumulated dry powder and maturation pressures.
MetLife Investment Management's $1.6 billion private equity portfolio disposition—in which the acquirer purchased $1.2 billion in PE and VC assets with total funded and unfunded commitments of $1.2 billion—exemplifies the broader institutional trend of portfolio optimization and alternative asset rebalancing. This follows MetLife's general account holding $14 billion in private equity assets as of 2021, indicating substantial capital redeployment.
Mid-sized European alternative managers maintaining €3+ billion in AUM, including GLL with investments spanning Western Europe, Central Eastern Europe, and the United States, continue both new commitments and strategic exits despite market friction. These managers remain active participants in a selective exit environment, benefiting from established track records and diversified geographic positioning.
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