Fund Finance Laws And Regulations 2022 | 09 Navigating Alternative Liquidity Solutions

1 Introduction

2019 had drawn to a close as another bumper year for private markets – managers had raised over $1 trillion of new capital (for the third consecutive year) and were sitting on an estimated $3 trillion of dry powder.  Starting off with high levels of investment and fundraising activity, 2020 looked set to continue the winning streak.  And then came March 2020 – the pandemic hit and the world, quite literally, stopped.  M&A activity ground to a halt, fundraising activity was interrupted, portfolio companies faced cash crunches, alarm bells sounded around investor liquidity, and a number of banks paused or restricted their lending activities – all of which contributed to an urgent need for liquidity for many fund managers.