Senior executives in the private markets sector pointed to weaker incomes and challenges raising money at the industry's largest annual conference in Berlin this week.

How this affects you

The private equity industry is experiencing a prolonged 'liquidity crunch' with companies held longer in portfolios, leading to a slowdown in distributions to investors. This situation is reducing cash cushions for U.S.-listed private-credit lenders and increasing redemption requests, signaling potential financial instability across global private markets.