John At The Center

Most of us know why but their thinking goes one step ahead. Because of the denominator effect, they are holding a greater percentage in private equity. That’s fine, but what is this going to look like in 3-5 years? Well, the private equity guys see that it’s a great time to buy right now so they’ll draw down capital and put it to work. So if things go as planned, the limited partners could potentially hold A LOT more of their assets in private equity than they want. And that’s part of the bigger reason why they are selling.