Liquidity has emerged as one of the defining issues confronting markets today. Over the past decade, the growth of liquid and semi-liquid fund structures broadened access to the asset class, but it has also increased the stakes when demand for liquidity rises simultaneously. Structures that function smoothly in benign environments have been forced to operate under stress, revealing the mechanisms that constrain access to capital: gates, suspensions, and discounted liquidity options that many investors did not fully underwrite when making their initial commitment.
In the latest piece from our GP Solutions team, we explore the structural reality behind today’s liquidity debate, what options are available, and why NAV financing solutions are increasingly relevant.