Overdue: LP defaults

It's been a long time since most GPs have asked LPs for money. Special situation secondaries funds aside (last month clocked up $11bn for secondaries), most GPs are sitting tight this year, cosying up to LPs but not asking them for any firm commitments. As one placement agent described it, "To ask for money now is to force a decline." Moreover, "once that 'no' is in the minutes of a meeting, it will be extremely difficult if not impossible to reverse the decision", regardless of the economic backdrop. Hence, wise GPs are waiting until the beginning of next year at the earliest to gauge appetite