Private equity firms could become zombies
By Hicbd
Thu Sep 28 2023 4:00 pm
"If money managers don't launch new flagship funds or find other ways to shore up their fees, they can eventually lose staffers en masse, leaving a skeleton crew behind to resolve old bets and manage bills. Funds — typically designed to last no longer than 12 years — end up going long past expiration dates, with firms sometimes sliding assets into continuation funds to keep managing them. It creates headaches for clients, who have to decide whether to press for an exit or hang on, hoping things turn around. The steep discounts to ditch problematic fund stakes prompt many investors to spend years crossing their fingers."
URL:----------------------------------------------------------
Please login to comment
