PE break-up assumption

I am reading textbook chapter 9 - p.79 and in the last paragraph it mentions “break-up” assumption for PE, especially in VC. Can someone elaborate a bit about this “break-up” assumption? Thanks in advance.

bump someone please help

I think they are saying when valuing NAV for PE using a bottom-up approach for valuing a “break up” meaning an exit is challenging/very hard b/c PE are long term investments and can pick when to exit to produce the best timing. If an investor is exiting before maturity or at maturity greatly affects the NAV calculation since the residual value embedded in the NAV has a large range depending on when the “exit/break up” occurs. The assumption is the value at exit, which is hard to estimate. Hope that helps.