In today's edition of Side Letter, Goldman's Solomon argues that private equity sponsors are incentivised to hold on to assets rather than sell them, a dynamic that may be contributing to the illiquidity now facing the industry.
BlackRock, meanwhile, expects evergreen funds to 'turn a corner', pointing to a possible improvement in the liquidity and investor demand that have weighed on these vehicles.
Audax is seeking more than $6 billion for a new flagship fund, a fundraising target that signals continued investor appetite for large, established private equity strategies despite a tougher exit environment.
Together, the three developments highlight the tension between sponsors' incentives, the evolving role of evergreen structures, and the capital still being raised for flagship funds.
Source: PE International · Summarized by HeadlinesBriefing