NEPC’s Sarah Samuels spoke alongside Steve Moseley, managing director at GP-stakes firm Wafra, at the SALT Conference in New York on Monday to discuss the tensions that exist between GPs and LPs. Read excerpts from article below or view the article on Institutional Investor’s site here.
“Tough markets have sparked tension between investment managers and the allocators who supply them capital.
With liquidity tough to access on both the buy and sell sides of the market, the delicate relationship between limited and general partners may be more balanced than it used to be — but that doesn’t mean things are easy.
“This is a gnarly market,” said NEPC managing director Sarah Samuels. “It’s not one we’ve seen in a long time… We’re all being tested.”
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“GPs think LPs want liquidity because they’re being greedy,” Samuels said. “LPs think GPs are being greedy by not giving them liquidity.”
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As for the liquidity problem? According to Samuels, LPs have found ways to commit, even if they have to write smaller checks than previously given liquidity constraints. But for those that can, there is immense opportunity.
“On the opportunity side, this is one of the best times to put your capital to work, but it feels really scary,” she said.
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