Written by Parabellum Investments
Rami Cassis has been featured in The Digital Banker, where he expressed a need for greater personal investment from private equity general partners in the industry.
Cassis argued that GPs should increase the personal capital they invest from the typical 1 per cent commitment to around 10 per cent. He believes GPs, especially in smaller PE firms, should be willing to take on more risk in the current high interest rate environment to soften the impact of the macroeconomic environment.
This increased personal investment Cassis advocates for will not only address funding gaps for smaller firms but also build confidence among outside investors, level the risk exposure between LPs and GPs, and contribute to the overall resilience of the private equity industry. Cassis sees this move as essential for navigating the current landscape and emphasises that relying on short-term solutions or tightening financial strategies is not the optimal approach.
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