
Why smart GPs are abandoning the 10-year fund model for innovative fund structures solving the $4 trillion liquidity crisis plaguing traditional PE funds.
In this episode of GRC in Focus, host Asad Bukhory challenges the traditional private equity model and explores the innovative fund structures that are revolutionizing how private capital operates. With $4 trillion in portfolio assets sitting in PE funds—40% held for more than 4 years—the industry faces unprecedented liquidity pressures that demand creative solutions.
Asad breaks down some of the structures including Rolling Funds (the "Netflix model" of PE), Evergreen Funds offering perpetual capital, Parallel Funds enabling global fundraising, and Continuation Funds solving exit timing mismatches. He examines how these structures address the evolving needs of Limited Partners seeking flexibility, General Partners requiring longer hold periods, and the growing push to democratise private markets for individual investors.
From the explosive growth of semi-liquid products ($350 billion market) to the regulatory implications of recent SEC rule changes, this episode provides essential insights for GPs looking to differentiate their offerings, LPs seeking better terms, and advisors navigating the future of private capital deployment.