Drawdown Funds

“What I don't like about drawdown funds, the traditional private equity fund is, you know, you commit to them, they charge your management fees for a while, They find a deal, they draw it down, so your money's not been in the ground for a few years. And then a …”

“Maybe we do a non-traded BDC, which was now up to 2018. That's where I was like, well, this is the original asset liability mismatch that you tried to cure by doing a drawdown fund because You might have all the investors looking for the exit, even though it's…”

“For managers that are in the, what I call, no man's land, And this is what I mean by that. Your returns are somewhere between 11 to 14% net returns is what you've delivered, and you are looking to lock up your capital for 10 to 15 years, and no one ever ends o…”

“So in places like direct lending, core plus real estate, and even value-add a little bit, and in infrastructure investment, the core core plus space, we prefer a lot of the evergreen strategies. And then in the more directional private equity, definitely growt…”

“If you're in a drawdown fund, you have to generate high teens returns to get the same multiple uninvested capital over a ten-year period as you would if you're getting low teens IRRs in an evergreen structure.”