Newer GPs eye credit to fund commitments amid exits slowdown

Some sponsors are in liquidity binds because they must wait longer to get carry.

Newer GPs that showed strong fundraising growth in recent years are now victims of their own success as exits sputter.

Market volatility caused by the war in Ukraine, high inflation and rising interest rates have curtailed the opportunities available to exit existing investments. That means relative newcomers unable to put up realised carry are having to borrow in order to meet their own fund commitments, fund finance sources tell affiliate title Private Funds CFO.