Real estate private equity in 2025:
LP: I'd really like my money back.
GP: Me too. I don’t get paid until we liquidate.
LP: So why don’t you liquidate the fund?
GP: There are no buyers.
LP: What happened to all that dry powder?
GP: They can’t sell their existing books.
LP: Holding onto yesterday's pricing?
GP: It’s more about a broad lack of liquidity.
LP: Hmm. How are your marks?
GP: We have an extensive valuation process.
LP: So how do we break the logjam?
GP: Ever heard of a continuation fund?
LP: You mean... kick the can?
GP: Look on the bright side. Alternatives are great diversifiers.
This conversation is happening more and more every day.
This Carlyle outline offers a deeper dive into why portfolio managers and wealth advisors continue increasing exposure to private markets.
What will define 2025’s capital markets: stuck in the mud or alternatives en vogue?
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