articleCapital Raising
Private Credit Funds: Why Institutional LPs Want Illiquidity (And How You Pitch It)
Private credit LPs actively prefer illiquidity in exchange for higher yields. A closed-end fund with 7-10 year lockup outperforms open-ended alternatives because of predictable distributions and lower management complexity.
ByRachel Vasquez
·14 min read
Reviewed by Jeff Barnes — CEO of Angel Investors Network · MBA · $1B+ in Capital Formation
Private credit LPs actively prefer illiquidity in exchange for higher yields. A closed-end fund with 7-10 year lockup outperforms open-ended alternatives because of predictable distributions and lower management complexity.
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Rachel Vasquez
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