By Ateev Bhandari and Pritam Biswas

May 22 (Reuters) - Private equity firm GTCR is set to

return more than $5 billion to its investors in the calendar

year, a source familiar with the matter told Reuters on

Thursday, after a string of strong exits sealed a positive

momentum for the firm.

The development is bucking the trend, as private market

investors continue to face a liquidity crunch, driven by

persistently high interest rates, macroeconomic volatility and

rising odds of a U.S. recession.

GTCR's sale of Worldpay last month netted the firm a return

two times its investment, the source added, with the $24.25

billion three-way deal helping to lift an otherwise moribund

start to the year.

In an environment where private equity firms have been

compelled to hold onto their investments for longer periods,

GTCR has been actively divesting its stakes.

Earlier this week, Reuters reported, citing a source, that

GTCR sold insurtech itel for over $1.3 billion. This followed

its late 2024 sale of insurance brokerage Assured Partners to

Arthur J. Gallagher ( AJG ) for $13.45 billion.

GTCR declined to a Reuters' request for comment.

Expectations of a dealmaking resurgence in 2025 have morphed

into policy paralysis in recent months, as bankers advise

clients to hold off on mergers and acquisitions and initial

public offerings until there is more clarity and consistency on

U.S. policy.

M&As in April have almost fallen to their lowest level in

more than 20 years, leaving investors in private markets, who

lock up capital at a higher risk expecting higher returns,

pressuring their money managers for distributions.

Many prolific investors, including Harvard and Yale

University, have been reducing their private equity positions as

capital calls from commitments to other funds have outpaced

returns from such investments.

Bloomberg was the first to report on GTCR's returns.