How challenging market conditions are placing increased pressure on GPs and the private equity buyout model.
In our recent conversation with Real Deals' Jennifer Forrest, Reach Capital | Private Assets Advisor had the chance to share insights on how challenging market conditions are placing increased pressure on GPs and the private equity buyout model.
Looking ahead to H2 2023, we discussed the impact these challenges will have on the market. High interest rates and price multiples have meant two out of the three levers available to GPs have become increasingly difficult to deploy, leading LPs to question this model.
We were also happy to see William Barrett, CAIA's contributions featured in Real Deals’ July print edition on the evolving nature of LP/GP relationships amidst constraints on liquidity and a tricky fundraising climate. We explored the current challenges GPs are facing, and considered why it might be the ideal moment to make the most of existing LP relationships, whilst remaining conscious of “over-soliciting” LPs who may be at the end of their allocations.
Read the full article: https://realdeals.eu.com/article/buyout-model-under-threat-if-volatile-market-continues
Looking ahead to H2 2023, we discussed the impact these challenges will have on the market. High interest rates and price multiples have meant two out of the three levers available to GPs have become increasingly difficult to deploy, leading LPs to question this model.
We were also happy to see William Barrett, CAIA's contributions featured in Real Deals’ July print edition on the evolving nature of LP/GP relationships amidst constraints on liquidity and a tricky fundraising climate. We explored the current challenges GPs are facing, and considered why it might be the ideal moment to make the most of existing LP relationships, whilst remaining conscious of “over-soliciting” LPs who may be at the end of their allocations.
Read the full article: https://realdeals.eu.com/article/buyout-model-under-threat-if-volatile-market-continues
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