Longer life funds last longer than typical 7-10 year funds, they
- Add flexibility
- Eliminate time constraints
- Provide less volatile returns
- Fit investors with a longer time horizon
Longer life funds avoid force-selling a portfolio company
- With long-term growth opportunities
- During industry or economy downturns
More GPs are raising longer life funds, so they
- don’t have to fundraise as often
- can focus on deal sourcing and execution
Examples of longer life fund
- Blackstone: $5B, 20-year lifespan
- Altas Partners: $1B, 17-year lifespan