Private equity made up 21% of all CAAT assets in 2022, up from 9% four years ago, putting the mid-sized system in the same league as its largest global peers.
With sluggish fundraising and GPs often desperate for capital, LPs are in a stronger position to demand certain concessions that may have been unworkable in the bull market years.
On accelerated monitoring fees and indemnities, regulators discover they have had the power all along – bad news for those who would have challenged the relevant initial proposals from the SEC in court.
New Mexico’s results, along with recent private company data, suggest there may be a light at the end of the tunnel for LPs awaiting cash returns and liquidity.
Much of the debate boils down to the balancing act of more transparency across private funds versus increased expenses that will result from new requirements and their potential ramifications.