nothing Will says is wrong. however the elephant in the room is that a substantial % of GP assets are overmarked. the actual value of these illiquid securities could be 50% lower (or more) than where they are currently held. if all the private assets in a 12-year old fund were distributed to LPs, it will be a rude day of awakening to find out their 4X TVPI fund is really a 2X TVPI fund, and if they want cash for those assets they may have to sell for between 1X-1.5X.
100%. I don't think Will would disagree. It'd be a rude awakening for the LPs and their bosses too. No one has an incentive to discover the 'true' clearing price. There are no short positions to take. Principal-Agent problems abound.
nothing Will says is wrong. however the elephant in the room is that a substantial % of GP assets are overmarked. the actual value of these illiquid securities could be 50% lower (or more) than where they are currently held. if all the private assets in a 12-year old fund were distributed to LPs, it will be a rude day of awakening to find out their 4X TVPI fund is really a 2X TVPI fund, and if they want cash for those assets they may have to sell for between 1X-1.5X.
100%. I don't think Will would disagree. It'd be a rude awakening for the LPs and their bosses too. No one has an incentive to discover the 'true' clearing price. There are no short positions to take. Principal-Agent problems abound.