Career path of most resistance
23.07.2024 – Articles
Challenging market conditions have rightly seen private capital funds adapting. As funds take longer to raise, GPs are seeking new sources of capital in the shape of high net worths or retail investors.
While the move to non-institutional capital has been gaining traction for some time, the past 18 months have been a major catalyst for pursuing this fundraising strategy.
Despite the need to raise from these newer types of investors – as traditional institutional investors deal with overallocations – opening up funds to HNWIs and retail investors puts a massive strain on already overloaded finance and operational functions.
According to Mark Maynard, co-founder and MD of March Consultants, 2023 was a quiet year for hiring finance professionals, and while things appear more settled this year, progress is lethargic. “The lack of deal activity combined with slow fundraises is resulting in a mass anxiety when making decisions. Everything is taking longer. It currently takes several months between starting the the process to placing a new hire.”
Double trouble
But the more challenging conditions of the past two years combined with the steps funds are taking to remedy the situation is resulting in a double whammy for finance teams.