Private Equity Now – Impact on Fundraising (LP Perspective)

We resume our discussion of the private equity liquidity crunch and its impact on fundraising, this time from the LP’s perspective. The supply/demand imbalance in the fundraising environment has shifted to favor LPs. This gives them greater GP access, longer diligence windows, and more negotiating power with LPA terms.

But many LPs, their investment programs tied to distributions, are hamstrung: no cash in means no cash out. For those with ample dry powder and who deploy from independent pools of capital, now can be a great time to invest. That said, there are pitfalls to avoid…

▶︎ Read Dec 2nd, 2024 Newsletter: here