90% of LPs experience fundraising extension requests
Given the tight liquidity environment, the vast majority of respondents have received fundraising extension requests from their GPs in the past 12 months. Nearly two-thirds have also observed funds closing below target over the same period. The views expressed were consistent across regions.
Fund sizes have been on a steady upward trajectory, with managers launching funds larger than their predecessors in recent years, though not all have succeeded in meeting their target size. Perhaps we might be approaching an inflection point, as there has been a high level of scrutiny on fund size increases by LPs for a number of years.
Nearly four-fifths of LPs feel comfortable with their GPs’ current alignment. Out of those, 32% believe that most of the GPs they are invested with currently demonstrate adequate commitment to the funds. That sentiment was prevalent among the North American investor base with 38% of respondents holding such a view. In contrast, European LPs exhibited the lowest level of confidence in this regard, with only 26% sharing that perspective, the smallest proportion of all regions.