Cash Pacing: Macro and Market Headwinds Create Headaches for LPs

Limited partners (LPs) now see private market funds as central to their investment strategies, driven by a need for diversification and strong return potential. The long-term appeal of private markets, especially private equity, remains strong, with allocations expected to grow. However, rising interest rates have increased borrowing costs, challenging debt-driven returns and lowering potential exit values. Consequently, the relative appeal of private markets may seem reduced as the risk-free rate rises.

Download our whitepaper and explore why private market funds are crucial for LPs' strategies and how rising interest rates impact their long-term appeal.