The short answer

Private equity is a long-term investment, and most structures include a lock-up: in a classic closed-ended fund, your money is returned through distributions as companies are sold, often over ten years or more; companies are held for around seven years on average. But there are several routes to liquidity. Evergreen funds offer monthly or quarterly redemptions, usually up to about 5% of the fund each period. Secondaries let investors sell fund stakes — a record US$240 billion changed hands in 2025. Listed private equity trades daily. The key is to plan: invest money you won't need for many years, keep a cash reserve, and pair private equity with more liquid holdings such as structured notes, which today pay up to 13.56% a year with regular kick-outs and quarterly income. Lawrence helps you plan it all together.

What a lock-up period is

A lock-up is simply the period during which you've agreed to leave your money invested. It's what allows managers to buy companies, build them up and sell at the right time — without having to sell early to meet withdrawals.

• Closed-ended funds — your commitment stays in the fund for its life, typically ten years or more, with money returned as companies are sold.
• Evergreen funds — some have an initial lock-up of a year or so, after which you can request redemptions on the fund's dealing dates, within its limits. Early withdrawal charges may apply during any lock-up.
• Listed private equity — no lock-up; you can sell your shares on the stock exchange.

Lock-ups are part of what makes private equity work. Managers who aren't forced to sell can wait for the best moment — and that patience is a key part of the strategy.

A typical fund's cash flows over time

In the first four years or so, the manager calls your commitment in stages as it buys companies, so money mostly flows out from you. From around years three to seven, the companies grow and the first exits may begin, bringing early distributions. Between years five and ten, most companies are sold and distributions flow back to you, often in larger amounts. After year ten, the fund winds up: the last companies are sold, or moved to a continuation fund where you can choose to cash out or stay.

The exact timing varies by fund and market conditions, but this pattern is why investors who build a programme across several vintages end up with money coming back almost every year.

Why lock-ups work in your favour

It's natural to see a lock-up as a cost — but it's also a key part of what makes private equity work. Because managers know their capital won't be withdrawn suddenly, they can take a long view: investing in improvements that pay off over years, waiting for the best moment to sell, and never being forced to dump good companies in a falling market to meet withdrawals. Cambridge Associates notes that private equity is best judged over periods of ten years or more — and the lock-up is what makes that long-term approach possible.

Routes to liquidity at a glance

How money comes back to you, route by route.

From Schwab (December 2025), Moonfare (citing Preqin), Jefferies (February 2026) and Bain (2026). Each fund sets its own terms.

Distributions: getting paid as companies are sold

In a closed-ended fund, the main way you're paid is through distributions. Each time the manager sells a company — to a buyer, to another fund or through a stock market listing — the proceeds flow back to investors through the waterfall. Bain reports the average holding period is around seven years, so distributions tend to build in the second half of a fund's life.

The good news is that exits are picking up strongly. Bain reports buyout-backed exits rose 47% to US$717 billion in 2025, with the IPO market reopening — the US$7.2 billion Medline listing was seen as a possible start of stronger IPO activity. With around 32,000 unsold companies worth US$3.8 trillion held by funds, there's a large pipeline of future exits — and future distributions.

Evergreen redemptions: periodic access

Evergreen funds were designed to give individuals a smoother experience — including a route back to cash. Most offer redemptions monthly or quarterly, typically up to about 5% of the fund's net asset value each period. You submit a request before the dealing date and receive the value of your units at the fund's NAV.

Because the fund holds long-term private investments, it limits how much can be withdrawn in any one period. If requests exceed the limit, the fund may pay each investor a proportionate share and carry the rest forward, and managers can "gate" redemptions in stressed markets. That's why evergreen funds work best when you plan to stay invested for years and use redemptions as an occasional option rather than a regular source of cash. Our guide to private equity fund structures and fees explains evergreen funds in detail.

The secondaries market: a record source of liquidity

One of the biggest changes in private equity has been the growth of the secondaries market, where investors sell their existing fund stakes to specialist buyers. It's turned what used to be a locked-up investment into one with a genuine exit route.

The secondary market is now large and growing. Jefferies reports US$240 billion of secondary deals in 2025, up 48% and the largest year on record. Of that, US$125 billion was LP-led — investors selling stakes in funds — and US$115 billion was GP-led, mostly continuation funds, up 53%. Buyout fund stakes sold at an average of 92% of NAV, and 87% across all LP portfolios. More than US$100 billion is expected in the first half of 2026, with a path to around US$300 billion a year within the next two years.

For investors, that means if your plans change, there's a deep, active market for your stake — usually at a price close to its reported value for well-performing buyout funds. And for buyers, secondaries offer mature portfolios and faster distributions, which is why secondaries funds have become popular in their own right.

Selling a fund stake, step by step

1. Check the fund's transfer rules — most funds allow stakes to be sold with the manager's consent.
2. Get a valuation — the latest reported NAV is the starting point for pricing.
3. Approach buyers — through a platform's secondary service, an adviser or a specialist secondaries buyer.
4. Agree a price — usually expressed as a percentage of NAV; in 2025, buyout stakes averaged 92%.
5. Complete the transfer — the buyer takes over your stake, including any remaining commitment.
6. Receive the proceeds — and convert them to baht if you need them in Thailand.

Some platforms run their own secondary programmes or offer periodic liquidity windows for investors in their feeder funds, which can make the process simpler still.

How evergreen funds keep money available

Evergreen funds use several tools to meet redemptions without disturbing their long-term investments. They typically hold part of the fund in cash and more liquid assets, receive a steady flow of distributions from the companies and funds they own, take in new money from investors, and often hold secondaries and co-investments that mature at different times. Together, these give the manager a regular pool of cash for redemptions — and the redemption limits make sure no rush of requests forces a sale at the wrong time, protecting everyone who stays invested.

Where to start

Planning private equity and liquidity together — and better rates when distributions arrive.

Continuation funds: a choice when a company is kept

Sometimes a manager believes one of its best companies still has years of growth ahead, even as the fund reaches the end of its life. Rather than selling, it can move the company into a new "continuation fund", backed by secondaries investors. Existing investors are then usually offered a choice: cash out at the agreed price, or roll their stake into the continuation fund and stay invested. GP-led deals like these reached US$115 billion in 2025, up 53%, according to Jefferies — giving investors more control over when they take their money.

Listed private equity: daily liquidity

For investors who want private equity exposure with full liquidity, listed private equity is the simplest route. Listed private equity firms and investment trusts own portfolios of private companies or fund stakes, and their shares trade on stock exchanges every day. You can buy and sell any amount, with no lock-up. The share price moves with markets and can sit above or below the value of the underlying assets — which can sometimes offer an attractive entry point. It's a useful complement to evergreen or closed-ended funds.

Planning your liquidity

The secret to enjoying private equity is to plan liquidity before you invest, and this is the framework Lawrence uses with clients. Keep a cash reserve of six to twelve months' living costs outside any investment, and list your known future costs — a property, school fees, a car — with their dates. Size your private equity sensibly, as a portion of your portfolio you won't need for many years, and choose the right structure: evergreen for periodic access, closed-ended for long-term commitment. Pair it with liquid income, such as structured notes paying quarterly coupons and regular kick-outs, and build over time by committing to new funds every year or two, so distributions start arriving in later years. And know your exit options — redemptions, secondaries and listed alternatives.

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Pairing private equity with structured notes

Structured notes and private equity make a natural partnership. Private equity is the long-term growth engine, with money committed for years. Structured notes provide what private equity doesn't: defined returns, regular payouts and shorter timescales. Today's notes pay up to 13.56% a year on US dollar autocalls and 9.72–9.85% a year of quarterly income on Phoenix notes, and kick-out plans have historically paid out after just over two years on average.

Together, they let you hold long-term private equity with confidence: the notes provide income and regular liquidity, and their payouts can be used to meet private equity capital calls or reinvested. Our guide to structured product liquidity explains how notes return money to you.

How a programme creates its own liquidity

Professional investors build private equity programmes by committing to new funds every year or two. After a few years, something useful happens: the older funds start distributing cash just as the newer ones are calling capital. The programme begins to fund itself, with distributions covering new commitments — and eventually producing surplus cash. It's a disciplined way to keep a steady allocation to private equity while money flows both in and out. Our guide to private equity for eligible international investors explains how to build one.

Understanding the numbers

NAV is the reported value of your investment, updated regularly. DPI, or “distributions to paid-in”, shows how much cash has been returned compared with what you've put in; a DPI of 1.0 means you've had all your money back. TVPI, “total value to paid-in”, adds the remaining NAV to the cash returned. IRR is the annualised return, taking into account when money went in and came out. And the distribution rate is the cash paid out each year as a share of NAV — Bain reports it has been running around 14%, with exits now picking up.

Lawrence explains these measures for any fund you're considering, so you know exactly how your investment is progressing.

Questions to ask about liquidity

Ask how long the fund's term is, or whether there's an initial lock-up, and how often you can redeem and how much each period. Find out whether there are early withdrawal charges during any lock-up, and what happens if redemption requests exceed the limit. Ask whether your stake can be transferred or sold and whether the platform offers a secondary service, when distributions are likely to start in a closed-ended fund, and how often you'll receive valuations and distribution reports. Then consider how it fits with your cash reserve and other investments.

Private equity in retirement

Retirees can enjoy private equity too — with the right balance. Because private equity is long term, it usually suits a smaller part of a retiree's portfolio, alongside investments that provide regular income and easy access. A typical plan might combine a baht cash reserve for living costs, structured notes paying quarterly income, and a modest private equity allocation — perhaps through an evergreen fund — for long-term growth and to pass on to family. Our guide to building retirement income from investments shows how the pieces fit together.

Liquidity for expats in Thailand

For expats, liquidity often means baht. Private equity funds usually pay distributions in US dollars or euros, while your living costs are in Thailand. A good set-up keeps a baht cash reserve in Thailand, holds private equity and structured notes in international accounts, and converts money as distributions, coupons and kick-outs arrive. A specialist FX provider gets you far more baht than a bank on larger amounts — and can help meet capital calls in the right currency.

Top tips

Only invest money you won't need for many years, and keep a cash reserve outside your investments. If you value periodic access, use evergreen funds, and pair private equity with structured notes for income and liquidity. Build a programme, so distributions from older funds pay for new commitments, and know your exit routes — redemptions, secondaries and listed funds. Plan your currency for distributions and calls, and review everything regularly with your adviser.

Three real-world examples

These are illustrations, not real clients.

Daniel, 52 — evergreen plus notes

Daniel holds an evergreen private equity fund for long-term growth and two Phoenix notes for quarterly income. His cash reserve covers a year of costs, so he's never needed to redeem.

Patricia, 60 — a change of plans

Patricia had a stake in a closed-ended buyout fund when she decided to buy a home in Hua Hin. Her adviser arranged a sale of the stake on the secondaries market at close to its reported value, and she used Vita Capital to bring the money to Thailand.

Paul and Sue — a self-funding programme

Paul and Sue commit to a new fund every two years. Distributions from their earliest funds now cover their newest commitments, while structured notes provide their income.

Your liquidity checklist

Set aside a cash reserve and list your future costs and their dates, then decide how much to commit for the long term. Choose between evergreen and closed-ended, check the lock-up and redemption terms, and add structured notes for income and liquidity. Know your exit routes — and talk to Lawrence about planning it all together.

Investing safely online

Only invest through established platforms, managers and advisers, confirm any bank details directly before sending or receiving money, and use a private, protected connection when you log in to investment platforms on hotel, café or condo Wi-Fi.

How we researched this guide

This guide draws on Jefferies' 2025 Global Secondary Market Review (10 February 2026); Bain & Company's Global Private Equity Report 2026; Charles Schwab's "What to know about evergreen alts funds" (December 2025); Moonfare's guide to semi-liquid funds (citing Preqin); and Cambridge Associates' US PE/VC benchmark commentary for 2025. Checked 14 October 2026. Private equity is a long-term investment, usually available only to eligible investors; redemptions can be limited and secondary sale prices vary. This guide is general information, not personal financial advice.