Alaska Permanent Fund

Investors believe uncertainty caused by US President Donald Trump's tariff policies could postpone a thaw in exit markets, compounding existing fundraising challenges.

In this nine-minute interview, Alaska Permanent Fund's deputy CIO says prioritising distribution ratios as a metric will cause GPs to do 'very unnatural things'.

Manager selection has become a critical point for LPs including Alaska Permanent and CPP Investments as they continue to focus on the asset class's ability to deliver alpha.

Some investors are scrutinising LP bases to ascertain whether managers will face increased pressure to deploy an excessive amount of capital beyond their original fund size.

The strategy has played a critical role in LP-GP negotiations this year.

Some 45% of global LPs plan to increase their private equity deployment over the next year, marking a substantial increase from 2024.

Markets of interest include the UK, DACH and the Nordics, Allen Waldrop, deputy CIO for private markets, tells PEI.

Continuation funds, NAV loans, dividend recaps and other tools have muddied the waters when it comes to investors ascertaining how distributed to paid-in ratios are generated.