Nine in 10 LPs More Likely to Commit to Funds Using Leverage When Disclosure is Clear

Fund-level leverage and liquidity tools have moved from specialist financing techniques to mainstream private capital infrastructure, according to new research from CSC, the leading provider of global business administration and compliance solutions. The findings show that limited partners (LPs) are increasingly open to the use of these tools when disclosure is clear, but general partners (GPs) face growing pressure to prove that the operating model behind them is controlled, transparent, and investor-ready.

CSC¹ surveyed 300 GPs and 200 LPs across North America, Europe, the U.K., and Asia Pacific. The report, Future Private Capital CFO 2026: How CFOs are becoming the architects of operational trust, examines how fund finance, liquidity management, reporting, outsourcing, cybersecurity, and AI governance are reshaping the role of the private capital CFO.

The findings show the market has moved beyond a simple debate about whether fund-level leverage should be used. Instead, LP focus is shifting to how it is governed, disclosed, and reflected in performance. In fact, 90% of LPs say a GP’s use of fund-level leverage and liquidity tools would increase their likelihood to commit or re-up when disclosure is adequate.

The report also shows that liquidity tools are now part of the core private capital operating model. GPs use 2.4 liquidity tools on average, including continuation vehicles or GP-led secondaries, hybrid facilities combining subscription and NAV features, NAV facilities, and subscription credit facilities.

“Liquidity tools can create real flexibility for managers, but the operating model has to keep pace,” says Marshall Saffer, managing director, Fund and Capital Markets Services, CSC. “As firms use more facilities, structures, and financing routes, they need to be able to explain not only how those tools are being used, but also who bears the costs and how they affect performance, liquidity, and governance. That requires a clear view across treasury, accounting, lender reporting, investor communications, and oversight.”

LP interest is centered on the economics and governance behind borrowing. Financing costs rank as the top area where LPs want greater visibility, cited by 58% of respondents, followed by the impact on returns and performance reporting, cited by 56%. LPs also want greater clarity on the purpose and use of proceeds, liquidity management rationale, key terms, limits, and utilization.

“LPs value clear, decision-useful disclosure rather than simply more pages and documentation,” says Marshall. “They want answers about costs, who bears them, how facilities are being used, and how financing affects performance. Consistency matters as much as volume.”

However, as fund-level liquidity becomes more embedded, the operating architecture behind it is still catching up. Nearly two-thirds (63%) of GPs cite integrating facility data with fund accounting and investor reporting as a major operational challenge. Half cite performance attribution and the fair-value impact of leverage, while more than half point to coordination across multiple facilities and providers.

These pressures are placing CFOs at the center of a broader operating shift, with responsibility for ensuring facility data flows into fund accounting, costs are attributed consistently, covenants are monitored, and LPs receive a clear view of how leverage affects fund economics and performance.

“LPs increasingly want clear, concise data they can use in their own reviews and decision-making,” says Chris Patton, regional head of Funds, EMEA, CSC. “That is being driven by both investor needs and regulatory pressure, and it reflects where the market has moved.

“Fund-level leverage and liquidity tools are now part of the private capital toolkit, so the firms that stand out will be the ones that can clearly show how the operating model works behind the scenes. That is where CFOs have such an important role to play, connecting the data, controls, reporting, and oversight that give investors confidence.”

For managers, the Future Private Capital CFO 2026 research findings raise four questions about where transparency now matters most:

1. Why is fund-level leverage being used?
   LPs want to understand the purpose of leverage, who bears the cost, and how it affects liquidity, governance, and reported performance.
2. What cost and performance data do LPs need?
   Financing costs are the top area where LPs want greater visibility, cited by 58% of respondents, followed by the impact on returns and performance reporting, cited by 56%.
3. Can facility data be connected to investor reporting?
   Nearly two-thirds of GPs, 63%, cite integrating facility data with fund accounting and investor reporting as a major operational challenge.
4. How is the CFO building operational trust?
   As fund-level leverage and liquidity tools become more common, CFOs are increasingly responsible for ensuring costs are attributed consistently, covenants are monitored, and LPs receive a clear view of how leverage affects fund economics and performance.

To read the full report, download a copy of CSC’s Future Private Capital CFO 2026: How CFOs are becoming the architects of operational trust.

¹ CSC, in partnership with Pureprofile, surveyed 300 GP and 200 LP senior fund professionals operating in Europe, the U.K., North America, and Asia Pacific to understand their aspirations and challenges for 2026 and beyond.

About CSC

CSC is the leading provider of business administration and compliance solutions, offering industry-leading expertise and unmatched global reach to alternative fund managers and capital markets participants. Leveraging deep institutional experience and a tailored approach, CSC delivers a comprehensive suite of fund administration, trust, agency, and compliance services to support a wide range of private and public market transactions, complex fund strategies, and scalable operations.

As the trusted partner of choice for more than 75% of the PEI 300 and 90% of the Fortune 500^®, CSC helps clients navigate operational and transactional complexities across more than 140 jurisdictions and various asset classes. With extensive worldwide capabilities, our expert teams provide solutions tailored to each client’s needs. Privately held and professionally managed since 1899, we combine global reach, local expertise, and innovative solutions to help our clients succeed.

We are the business behind business^®. Learn more at cscglobal.com.

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