Tweet by jam_croissant

November 11, 2025

Liquidity cuts ✂️ both ways… 1/ “Liquid private equity” & “private credit” funds got the green light 🚦from the SEC — after massive lobbying by an industry desperate for liquidity in a market with no buyers. ⸻ 2/ The irony❓ These same “liquid” vehicles might be the thing that undoes private markets altogether. ⸻ 3/ When crises hit, what do we always do ⁉️ 👉 We suspend mark-to-market. That’s how PE & private credit survived the last few crises — 🚫 NO forced marks, 🚫 NO runs. ⸻ 4/ But “liquid” PE & PC funds mean something new: They’ll be priced DAILY… MARKED… VISIBLE. ⸻ 5/ That means private assets — long valued by “model” not “market” — will suddenly have a market. And that market will soon speak. 🗣️ ⸻ 6/ Once the REAL marks emerge, the cascade likely begins: 🔹 Downward repricing 🔹 Margin pressure 🔹 Deleveraging in an industry built on leverage & opacity ⸻ 7/ The PE & credit giants lobbied for liquidity… They may have just lobbied for their own reckoning. 💥 Liquidity cuts ✂️ both ways…

Author
jam_croissant
Date
November 11, 2025
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