Private equity’s liquidity crunch fuels growth in secondaries, alternative fund structures

[SINGAPORE] Private equity fund managers are increasingly turning to secondary transactions and more flexible investment structures, as prolonged holding periods intensify pressure to return capital to investors.

Liquidity remains top of mind for investors as they seek to free up capital for new opportunities, while grappling with volatility arising from geopolitical tensions and policy changes.

Scott Hayward, CEO of GMO Asset Management, said: “There is a need for liquidity in an environment where investment opportunities require you to be more nimble in capturing them.”