VPS25 contains the ESCRT-II complex (endosomal sorting complex required for transport II), that is needed for sorting of endosomal cargo proteins into MVBs and multivesicular body (MVB) formation. The MVB pathway facilitates transport of transmembrane proteins into the lumen of the lysosome for degradation. The ESCRT-II complex takes part in the recruitment of the ESCRT-III complex which is involved in transcription regulation, probably through its collaboration with ELL.