Fund Terms

Nascent alternative mechanisms can grant people liquidity in private markets, from secondaries trading to target date funds in 401(k)s.

Rising redemptions and fund-level gates are exposing the limits of semi-liquid structures, especially among retail investors.

Most funds are closing within 12 months, while investors probe cybersecurity, cash oversight and operational governance.

With fundraising under pressure, seed commitments are now essential to helping emerging managers launch.

GPs must prepare for hidden industry-wide effects of expanding retail funds, from shifting allocations to liquidity stress.

The survey also found that GPs are negotiating fund terms more often, further adding to their compliance burden.

The registered ’40 Act fund aims to broaden the firm’s investor base and expand access to private markets.

Higher caps for borrowing limits and more flexibility on fund life extensions are among fund terms trends in a difficult fundraising market, according to Proskauer.

Some 38% of GPs offered early bird discounts on management fees in 2023, a marked increase from 18% the prior year, according to research from the law firm.

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