LISTEN: Where are hurdle rates trending?

With managers increasingly putting pressure on LPs to enter the carry early, Threadmark partner Patricia Wilkinson and PEI senior editors Bruno Alves, Jonathan Brasse and Toby Mitchenall look across asset classes to find out whether the status quo really is changing.

Hurdle rates hit the headlines after Blackstone’s proposed 5 percent for its debut $40 billion infrastructure fund was rebuffed by some of the vehicle’s LPs – with one telling Infrastructure Investor the benchmark was “just not a standard hurdle”. Despite this, the fund hit a first close with a 6 percent rate, with Blackstone joining a select club of managers able to push below the rather sticky ‘standard’ 8 percent.

In this first episode of our Spotlight podcast, Threadmark partner Patricia Wilkinson and PEI senior editors Bruno Alves, Jonathan Brasse and Toby Mitchenall take a look at the state of play across infrastructure, real estate and private equity, to find out what kind of pressure this fund term is really under.