Private equity: The Red Thread – Private Markets

Liquidity has become the number one issue for LPs in today’s private equity market. As holding periods stretch longer than anticipated and unrealized values reach record highs, investors are pressing GPs to return capital.

The robust growth of transaction volumes is expected to continue in the coming years, driven, among other things, by a further increased acceptance of secondaries by investors and fund managers alike and the use of secondaries in other sub-asset classes such as private credit and infrastructure.

Unlike traditional closed-ended private equity funds which are illiquid and have fixed lifespans typically for well over a decade, semi-liquid funds are open-ended and offer more frequent redemption opportunities, typically on a monthly or quarterly basis.