Audiocast: Navigating liquidity in financial services

In this extended cut episode of PwC’s Financial Services tax audiocasts, Amy McAneny and Brian Rebhun explore how liquidity concerns are impacting private equity, credit, insurance, and asset management sectors. With rising interest rates, delayed exits, and evolving investor demands, generating and preserving liquidity has become a central challenge across the industry. The discussion spans from foundational definitions to emerging solutions such as secondaries, NAV lending, and continuation funds. Listeners will gain insight into how firms are rethinking strategies and structures to navigate this evolving landscape.

• Liquidity is no longer a given: Even historically fluid sectors are grappling with restricted access to capital.  
• Three tiers of liquidity matter: Investor (LP), general partner (GP), and manager/firm-level liquidity all play different roles in financial planning.  
• Private equity, private credit, and real estate are experiencing the sharpest liquidity constraints, leading to longer holds and fewer exits.  
• Secondaries are surging: The need for liquidity is boosting the growth of secondary markets, with many firms hiring or acquiring specialist teams.  
• Creative structures are emerging: Tools like NAV lending, preferred equity, collateralized fund obligations, and BDCs are helping firms unlock value from illiquid assets.

Segmented topics with timestamps:

• 00:00 – Welcome and introduction to the liquidity theme
• 1:10 – Defining liquidity in financial services
• 04:10 – Key areas under pressure: Private equity, private credit, and real estate
• 06:45 – How insurers, asset managers, and banks are coping
• 09:00 – Growth of secondaries and rise of in-house secondary capabilities
• 13:20 – Structuring solutions: NAV lending, preferred equity, continuation funds
• 14:35 – Final thoughts on operational, tax, and strategic implications of liquidity