Nine in 10 LPs More Likely to Commit to Funds Using Leverage When Disclosure is Clear

This section is Partnership Content suppliedThe content in this section is supplied by Business Wire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content. by Business Wire Article contentSign In or Create an AccountEmail AddressContinueor View more offersArticle content90% of LPs say adequate disclosure around fund-level leverage and liquidity tools would increase their likelihood to commit or re-upGPs use 2.

4 liquidity tools on average as fund-level financing becomes embedded in private capital63% of GPs cite facility-data integration with accounting and investor reporting as a major operational challengeArticle contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentWILMINGTON, Del.

— Fund-level leverage and liquidity tools have moved from specialist financing techniques to mainstream private capital infrastructure, according to new research from CSC, the leading provider of global business administration and compliance solutions. The findings show that limited partners (LPs) are increasingly open to the use of these tools when disclosure is clear, but general partners (GPs) face growing pressure to prove that the operating model behind them is controlled, transparent, and investor-ready.Article contentArticle contentCSC¹ surveyed 300 GPs and 200 LPs across North America, Europe, the U.

K., and Asia Pacific. The report, Future Private Capital CFO 2026: How CFOs are becoming the architects of operational trust, examines how fund finance, liquidity management, reporting, outsourcing, cybersecurity, and AI governance are reshaping the role of the private capital CFO.

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Browse here.Article contentThe findings show the market has moved beyond a simple debate about whether fund-level leverage should be used. Instead, LP focus is shifting to how it is governed, disclosed, and reflected in performance.

In fact, 90% of LPs say a GP’s use of fund-level leverage and liquidity tools would increase their likelihood to commit or re-up when disclosure is adequate.Article contentThe report also shows that liquidity tools are now part of the core private capital operating model. GPs use 2.

4 liquidity tools on average, including continuation vehicles or GP-led secondaries, hybrid facilities combining subscription and NAV features, NAV facilities, and subscription credit facilities.Article content“Liquidity tools can create real flexibility for managers, but the operating model has to keep pace,” says Marshall Saffer, managing director, Fund and Capital Markets Services, CSC. “As firms use more facilities, structures, and financing routes, they need to be able to explain not only how those tools are being used, but also who bears the costs and how they affect performance, liquidity, and governance.

That requires a clear view across treasury, accounting, lender reporting, investor communications, and oversight.”Article contentLP interest is centered on the economics and governance behind borrowing. Financing costs rank as the top area where LPs want greater visibility, cited by 58% of respondents, followed by the impact on returns and performance reporting, cited by 56%.

LPs also want greater clarity on the purpose and use of proceeds, liquidity management rationale, key terms, limits, and utilization.Article content“LPs value clear, decision-useful disclosure rather than simply more pages and documentation,” says Marshall. “They want answers about costs, who bears them, how facilities are being used, and how financing affects performance.

Consistency matters as much as volume.”Article contentHowever, as fund-level liquidity becomes more embedded, the operating architecture behind it is still catching up. Nearly two-thirds (63%) of GPs cite integrating facility data with fund accounting and investor reporting as a major operational challenge.

Half cite performance attribution and the fair-value impact of leverage, while more than half point to coordination across multiple facilities and providers.Article contentArticle contentThese pressures are placing CFOs at the center of a broader operating shift, with responsibility for ensuring facility data flows into fund accounting, costs are attributed consistently, covenants are monitored, and LPs receive a clear view of how leverage affects fund economics and performance.Article content“LPs increasingly want clear, concise data they can use in their own reviews and decisi