A great read on the current liquidity market for LPs. Hark Director, Peter Wright, was quoted discussing how NAV solutions present timely and efficient tools for LPs to navigate accessing liquidity. #NAVSolutions #NAVLoans #LP #PrivateCredit #PrivateEquity #NAV #Portfolio #PortfolioFinance
LPs are turning to debt solutions to make up for the distribution drought of recent years. Why? Here are some reasons: 1) They tend to be faster than stake sales and less likely to agitate a GP. 2) These transactions are seen as less risky because of the amount of diversification in the underlying portfolio. 3) An LP generates liquidity through this route, but without letting go of its exposure to the equity, leaving it still to capture any additional upside. All that said, this solution is not a substitute for a stake sale on the secondary market. Instead, its just another solution available to LPs on the expanded menu of options they have these days. Special thanks to Michael Hacker from Carlyle AlpInvest, Gerald Cooper at Campbell Lutyens, Peter Wright at Hark Capital, Patricia Teixeira Wyrwoll at Ropes & Gray LLP, Dane Graham at 17Capital, and Bronwen Jones at Cadwalader, Wickersham & Taft LLP for their insights. This Mergermarket-Creditflux feature was reported alongside my dynamic funds duo of Lisa Fu here in New York and Kezia Kho in London. Read the whole story here and subscribe to keep up to date on all of our funds coverage:
