A lawyer and co-founder at Fund Finance Partners in Chicago, Illinois, Attorney Zac Barnett holds over 20 years of experience in fund financing products and fund sponsoring. His clients range from investment banks private equity funds to hedge funds. Part of Attorney Zac Barnett's job description includes lender comparisons, fund aftercare services, and portfolio exit strategies. Studies indicate that despite conducting due diligence, opportunity evaluation, and flawless execution, about a third of portfolio companies fail. As an investor, you must have a strong exit strategy to minimize losses and gain as much as possible from the exit. An initial public offering (IPO) offers the easiest method to access higher company valuation, especially for high-demand industries. However, expect steep transactional costs and contract-related penalties that may affect your returns on the downside. Investors should also seek a strategic buyer, often an investor or firm interested in the company's trade secrets, proprietary product or service, or a merger for better market traction and reach. This option offers a faster cash release compared to the IPO, with an added advantage of higher returns based on acquisition urgency. Lastly, consider a secondary buyout. The portfolio company sale happens between two private equity firms in this instance. The buyer often has more financial muscle to accommodate the plateaued finances and fund growth or diversification.