In PEI Group's new Commitment Issues podcast, Yangge Seaman of Children's Health System of Texas and Hg co-CEO Steven Batchelor discussed strategies for navigating the challenging exit environment. With distributions hovering around 11 percent of net asset value, comparable to levels seen during the global financial crisis, both sides are seeking greater liquidity from their portfolios.

While overall deal activity shows signs of picking up, exit distributions remain well below the 20 percent or more typical of robust years. Seaman outlined what she looks for in exit activity from GPs in her portfolio, while Batchelor explained how Hg uses a realization committee to maintain focus on selling companies. The discussion highlighted alternative liquidity options that GPs are increasingly employing.

Both executives emphasized the evolving LP-GP relationship and shared best practices around secondary sales as limited partners pursue liquidity. Their conversation revealed how institutional investors and general partners are adapting their strategies to address the slower pace of exits while maintaining strong partnerships through market cycles.