Winning hearts and minds of LPs
15.04.2025 – Articles
Houlihan Lokey recently published its LP Compass report, based on survey responses of 126 LPs. Here, we break down the key findings and turn them into considerations for improving your fundraising capabilities in a continually challenging environment.
Create certainty
Given the topsy turvy macro environment, unsurprisingly, 42% of LP respondents believe geopolitical risk and uncertainty presents PE’s biggest challenge this coming year. With that, anyone who can respond to the current uncertainty with a clear, defensive strategy will likely pique the interest of potential investors.
Inflation and interest rates were cited by 22%
M&A volatility came in at 19%
Tech disruption at 5%
Distributions, distributions, distributions
When asked the reasons for cutting allocations to PE, 31% of LP respondents said it would be because of a lack of liquidity.