Khajuria: PE fund durations match institutional LP liability requirements
Sachin Khajuria · Sachin Khajuria and Brendan Ballou – Private Equity: Profit or Plunder? (EP.331) · Aug 7, 2023 · at 18:40
Former Apollo partner Sachin Khajuria explains how private equity holding periods and fund structures align with the cash requirements of underlying institutional LPs.
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“Durations match, broadly speaking, the requirements of the underlying investor. And the reason that you're seeing increasing diversification in those durations is not just because the industry is growing, and therefore it's growing in different ways, different products, different slices, different ideas, different angles, different themes, but also because it's taking a little bit more share of the pie of the balance sheet of what investors are allocating to managed investments, and therefore the requirements from investors may change a little bit. So I don't think in and of itself Duration's an issue.”
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