THE DISTRIBUTION DRAINAGE PARADOX: HOW LEGACY PORTFOLIO DRAG IS RESHAPING 2026 CAPITAL ALLOCATION
The private capital markets face an unprecedented structural imbalance in 2026. While dry powder has reached $3.7 trillion in committed capital, the industry is simultaneously experiencing what McKinsey and Preqin term a "distribution drought"—a multi-year accumulation of portfolio assets that should have exited but remain trapped in fund vehicles awaiting liquidity.
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