SD-04.9 — Exit & Realisation Management

Business Domain: BD-04 Direct & Co-Investment (Front office) · Applies: PRIV

Purpose

Plans and executes the exit of a direct holding and the realisation of its value. Exit & Realisation closes the deal lifecycle: it decides when and how to sell, runs the sale, and accounts for the proceeds. Like the diligence and structuring domains, its operations branch by mode — the exit routes for a company, a real asset and a direct loan are different — but it is one realisation capability.

Service Operations

Assess exit readiness and plan timing — evaluate when the holding is ready to be realised and analyse the exit options.
Execute an equity exit — for a company, the trade sale to a strategic buyer, the IPO, the secondary buyout, or the dividend recapitalisation.
Execute a real-asset exit — for a real asset, the asset or portfolio sale, the sale-and-leaseback, the refinancing, or the concession hand-back at end of term; for a natural-resource asset, the timberland or farmland sale and the disposal of a depleted or harvested holding.
Execute a credit exit — for a direct loan, the repayment at maturity, the refinancing, or the secondary loan sale.
Run the GP-led secondary route — the move of an asset into a continuation vehicle.
Manage the sale process — prepare vendor due diligence, run the process, and manage the buyer field.
Account for the realisation — record the realised proceeds and the deal-level track record.

Inputs and outputs

Inputs: the matured holding and the value-creation outcome (SD-04.8 / SD-04.10 / SD-04.12); exit-market conditions.
Outputs: the executed exit, the realised proceeds and the deal-level track record — feeding BD-09 Performance & Analytics and BD-12 Investment Operations & Servicing.

Entities

Consumes: Legal Entity (E-01), Instrument / Asset (E-02), Direct Real Asset (RA-01), Transaction (E-05) — the exit is recorded as a Transaction; the SD-04.10 matured holding and the value-creation outcome; the SD-04.12 matured holding and the value-creation outcome; the SD-04.8 matured holding and the value-creation outcome.
Owns: none — the exit is recorded as a Transaction (E-05), owned by BD-12’s operations domains.

Standards

No single external standard governs exit. The four equity-exit routes (trade sale, IPO, secondary buyout, dividend recapitalisation), the GP-led secondary / continuation fund, and vendor due diligence are practitioner conventions.

Open extensions

The boundary with BD-12 on the funds-flow and settlement mechanics of an exit.