How Investors Access Cash and Still Keep Their Assets. Its Importance Right Now
Investors accustomed to traditional liquidity timelines are now dealing with extended waiting periods before realizing returns. Just last week, Forbes reported that the increase in interest rates since last year has resulted in fewer deals and exits, leading to “an accumulation of deals coming to market and delays in distributions.”
What used to be a five-year distribution timeline has stretched to seven or more, significantly impacting financial planning. However, there's a solution: accessing cash by leveraging assets through Liquid LP. Here’s how it works and why it has proven successful for thousands of limited partners.
What is Liquid LP and How Does it Work?
Liquid LP provides liquidity for investors through NAV loans against their illiquid fund positions, benefiting both individual and institutional investors across diverse asset classes. With a track record of assisting thousands of LPs as a financial partner, Liquid LP empowers smarter financial decisions with compounding impact.
Why Access Liquidity from Your Assets?
In addition to near-term cash obligations, there are several reasons why investors prioritize having cash for their assets. These include the opportunity to strengthen both existing and new portfolios by reallocating capital strategically. Having ready access to liquidity can optimize tax strategies for the best financial outcomes, ensuring the ability to take advantage of opportunities that may arise in the market or workplace.
LPs often seek capital for call requirements and immediate liquidity needs. Liquid LP’s services have assisted investors in accessing cash for properties that require immediate purchase, fulfilling capital calls to funds, tax payments and making new investments, among others. Whether fulfilling a GP fund obligation or leveraging cash for strategic asset acquisition, the goal is to enhance liquidity now and for future opportunities. Additionally, accessing liquidity through LiquidLP’s solutions often means investors are not forced to sell investments at discounted prices.
Learn more about Liquid LP.