The use of structured solutions and collateralised fund obligations has been growing steadily in recent years amid private markets' ongoing liquidity crunch. Temasek launched its first collateralised fund obligation in 2006, and two decades later, the technology continues to attract new and repeat institutional investors. Both general partners and limited partners are increasingly turning to these financial instruments to address market challenges.

A recent structured deal has drawn significant attention within private markets liquidity circles. Carlyle Group, a major alternatives provider, is reportedly running a deal known internally as 'Project Potomac', showcasing innovative applications of existing structured financing technology. This creative approach aims to generate liquidity for investors while simultaneously boosting fundraising efforts in a challenging market environment.

The growing interest in structured solutions reflects broader market dynamics, particularly the persistent liquidity challenges facing private markets. As traditional exit routes remain constrained, GPs and LPs are exploring alternative mechanisms to manage capital deployment and distribution. The evolution of structured finance technology demonstrates the industry's adaptability in addressing fundamental market needs while creating new opportunities for institutional investors.