Private equity has long sought an efficient way to marry the varied needs of private wealth investors with its own set of requirements. It appears to have found that in semi-liquid products.

EQT is the latest to try its hand at launching a semi-liquid offering. The firm plans this year to introduce “a mix of both asset-specific funds as well as [a broader] private markets structure”, head of business development Gustav Segerberg said on a Wednesday results call. These products will cater towards distribution banks, as well as to existing family office and private wealth clients.

The appeal of semi-liquid vehicles lies in their ability to meet redemption requirements more regularly than a traditional closed-ended fund. As Hamilton Lane notes, this is typically achieved either by holding cash or liquid assets such as ETFs, or through carefully managing the duration and yield of underlying investments. These strategies are often structured as ’40 Act funds’.

One of Hamilton Lane’s semi-liquid offerings, the Private Assets Fund, stood at $494.3 million as of end-November and comprises a mix of direct equity, direct credit and secondaries. Investors can buy in from $50,000, depending on share class, and request share repurchases on a quarterly basis.

Partners Group, meanwhile, was among the earliest to launch such a product in 2009. As of November, that vehicle had about $12 billion of client assets under management.

Of course, semi-liquid products are just that; the likes of Hamilton Lane’s PAF do not guarantee investors the right to repurchase shares and typically limit the proportion they allow to be repurchased each quarter to single digits.

Limiting liquidity carries its own unique set of challenges, as the saga over redemptions from Blackstone’s $69 billion property fund in December illustrates (the firm triggered a proration mechanism in line with its 5 percent quarterly limit to prevent a fire sale from Blackstone Real Estate Investment Trust).

This incident aside, private wealth appetites for the private markets are squarely on the up, as we explore in our Democratisation of Private Equity Special Report next month. And with many institutional investors constrained by allocation limits this year, the need for managers to source new pools of capital has become more pressing.

Though the semi-liquid market is – for now at least – but a small part of these efforts, Partners Group’s success in the arena suggests demand for such products is not insignificant. More GPs are sure to follow its example in the months ahead.