Private Equity Distribution Management is a service that completes the final stage of the private equity cycle through the effective liquidation of in-kind stock distributions.
Why is there a need for distribution management? Because stock distributions typically perform poorly in both the:
- Short term, due to liquidity pressures as 1/3 of the limited partners typically sell immediately (distributions typically dive 8-10% on the first day).
- Long term, because owners rarely outperform the general partners selling decision (GPs are savvy investors and typically sell/distribute at high prices).
Distribution Management is a core competency of the J.P.Morgan Private Equity Group, and we welcome the opportunity to discuss our capabilities with you.