Private Equity Firms Ask for Cash to Let Stakes Change Hands

Private equity firms are increasingly employing a fundraising tactic that makes it harder for major investors like pensions to exit their funds early, irritating clients who want cash on short notice.

Buyout shops, under pressure from high rates and a shaky economy, have been asking for commitments to future funds as a condition of allowing existing stakes to change hands, according to investors. The trend is slowing down so-called secondaries, or the buying and selling of private equity fund stakes before they mature — an option gaining importance as President Donald Trump’s tariffs disrupt markets.

Major asset managers including ...