Buy Now Pay Later Beats Steep Discounts for Private Fund Sellers

 

• Investors let buyers push back payments by 18 months
• Trend is helping keep volumes elevated amid drop in liquidity

Investors looking to offload their stakes in private funds are letting buyers push back their payments by months rather than accept a big discount on the price.

They’re increasingly using “deferrals”, which allow buyers to make part of the payment upfront and the rest at an agreed date in the future. As elevated interest rates erode returns for private equity and private credit funds, making them less attractive, buyers have been able to push for increasingly appealing terms.

https://www.bloomberg.com/news/articles/2024-08-29/buy-now-pay-later-beats-steep-discounts-for-private-fund-sellers