What question did this study set out to answer?

This research aims to explore how open-ended funds can effectively maintain liquidity while incorporating private equity and debt allocations.

July 3, 2026

Snapshots of Managing Illiquidity in Open-Ended Funds with Private Asset Allocations: Challenges and Solutions

Key Points

This research aims to explore how open-ended funds can effectively maintain liquidity while incorporating private equity and debt allocations.
Analyzed the use of liquid public assets to manage cash flows in funds.
Investigated the role of a dynamic recommitment process for handling capital calls and distributions.
Provided a framework for rebalancing allocations in open-ended funds.
Found that open-ended funds can successfully hold modest private equity and debt while retaining liquidity.
Highlighted that liquid public sleeves effectively absorb cash flows and mitigate liquidity challenges.
Demonstrated that a dynamic approach to capital management facilitates stable operations within open-ended funds.

Abstract

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that open-ended funds can hold modest private equity and private debt allocations while preserving liquidity if liquid public sleeves absorb cash flows and a dynamic recommitment process manages capital calls, distributions, and rebalancing.

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