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

    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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    About the Author

    Rachel Vasquez