Charles HudsonFounder and Managing Partner, Precursor Ventures

Private Equity vs. Venture Capital: Liquidity Timeframes

1 May 2025 · 0 min

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A short discussion comparing liquidity and exit dynamics between private equity (PE) and venture capital (VC). The speaker contrasts typical holding periods and expectations for returning capital — PE generally targets defined exit/landing spots to return money, while many VC funds may lack clear returns and can fail to return capital even over long waits.

Yeah. And I think that's why there are way more comps between private equity and venture capital than I've seen prior. And there's a good quote also in the threads of you can't buy a car with irr. The holding periods across private equity, that's been longer, too, than the usual two to three, three to four years. But in most cases, you would expect private equity to have some sort of an exit or a landing spot and return money back. And I think that's where the differences between the two assets classes is. There is a fair share of fund managers where there is no money returned back at all, even if you wait.