LPs pull back from first-time funds

A liquidity squeeze and ever-larger fundraises from established rivals have created a difficult environment for emerging managers, but optimism remains

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LPs have remained reticent about investing in first-time funds over the last year, as increasingly challenging market conditions and a lack of liquidity dampen enthusiasm for emerging managers.

More than a third of investors (34 percent) are less likely to invest in first-time managers in the next 12 months, according to Private Debt Investor’s LP Perspectives 2023 Study.

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