An exit is the event through which a private market investor monetises their ownership stake in a portfolio company. Common exit paths include an initial public offering (IPO), a strategic trade sale to a corporate buyer, a secondary sale to another financial investor, a management buyout (MBO), or a recapitalisation that returns capital while retaining ownership.
Exit timing and route are key determinants of fund returns. In Southeast Asia, trade sales to regional and global strategic buyers have historically been the dominant exit path. IPOs on the Singapore Exchange (SGX), ASX in Australia, or dual listings on NASDAQ/NYSE have become more common for companies of sufficient scale. The secondary market has grown significantly as an alternative liquidity mechanism, particularly for investors needing earlier-than-planned distributions.