Private equity firms are increasingly turning to semiliquid fund structures, such as interval funds and tender offer funds, to attract capital from wealthy investors. Asset management partner Chelsea Childs highlights the importance of partnerships in gaining access to financial advisers and affluent individuals in The Wall Street Journal PE Pro. She also notes the challenges of managing liquidity in semiliquid vehicles and the reputational risks if firms cannot meet client demand for redemptions.
“You have retail managers with great distribution networks with registered advisers who have access to these affluent individuals. On the other hand, the PE sponsors need access, but they have all the deal flow a traditional registered fund manager doesn’t have.”
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