Private equity executives are being forced to find creative ways to afford commitments they plan to make to their own funds, according to a survey of industry professionals.
Just 15% of the more than 80 respondents to the Investec Fund Finance General Partner Trends 2014 survey said they would be able to finance their funding requirements by reinvesting carried interest payments from previous funds. The majority said they would use their "existing resources" and another 22% said they would seek financing from either their employer or external sources.