Dakota Daily News

Good morning,

Private market LPs are recalibrating—and the ripple effects are showing up everywhere.

Cambridge Associates says distributions in private equity and venture have stayed in the single digits for four years, pushing LPs toward secondaries, tougher manager selection, and deeper scrutiny of GP-led deals and NAV loans. That pressure is shaping fundraising outcomes, portfolio construction, and what LPs look for in the “firm of the future.”

Elsewhere, public pensions made new commitments, re-ups, and redemptions, wealth firms battled for advisor teams and leadership talent, and private credit dominated fundraising with Monroe Capital’s $6.1B raise. Also inside: RIA M&A, global fund closes, and key executive moves across institutional and wealth management.

Let’s get into it…

 🚧 Table of Contents roadblock: Gmail has limited support for embedded links within emails. For the full experience, read this issue online at news.dakota.com

Have you ever stared at a blank report builder wondering “how do I even start this query?” — meet Dakota Joe.

Dakota Joe is your AI report builder inside Dakota Marketplace (he’s hiding behind the Joe button on your home page). Just click, type what you need in plain English, and let Joe do the heavy lifting. No filters. No guesswork. Just answers.

Ask things like:

Interested in learning more?

Speaking on Proskauer’s Private Market Talks podcast, Auerbach said LPs are now focused less on headline returns and more on actual cash coming back. “Distribution yields have been single-digit for both private equity and venture capital for the last four years… typically distribution yields run around 18% for private equity.” While some capital is flowing, many LPs still feel liquidity-constrained, driving increased use of LP-led secondaries—nearly half of sellers today are first-timers.

That pressure is also reshaping fundraising dynamics. LPs are becoming more selective, and relationships matter more than ever. Managers who secure commitments in this environment “will not forget the investors that showed up for them,” Auerbach said.

GP-led secondaries, once viewed as one-off restructurings, are now a response to delayed exits. LPs increasingly treat these deals as portfolio decisions and often choose to sell, particularly when they believe transactions “are also holding back the full return potential.”

At the same time, LPs are closely scrutinizing NAV loans and other financial engineering. “Your docs may be silent on it – do not be silent with your LPs,” Auerbach warned, emphasizing the need for transparency and restraint.

Looking ahead, diligence now extends beyond funds to firm durability. “If you are not actively evolving to stay competitive… you’re falling behind,” she said, underscoring LPs’ growing focus on the “firm of the future.” Source

RETURN TO TABLE OF CONTENTS

Dakota Recommends now includes 2,000+ curated coffee shops, event spaces, hotels, and restaurants across major global cities.

Built from real experiences across the Dakota community, it helps users find trusted places to meet, stay, and unwind while traveling.

Advisor movement stayed active in December, led by the Northeast, which recorded 19 transitions totaling $12.1B in client assets. The Southeast followed with 13 moves representing $1.8B, while the Midwest saw 11 moves ($3.6B). The Southwest and West each logged eight moves, though asset totals diverged sharply—$7.9B and $518M, respectively. Two high-profile transitions spanned multiple regions, including Rockefeller’s $3B recruitment of a former UBS team with offices in Florida and California.

Rockefeller topped December recruiting by volume, adding eight teams overall. Highlights included the UBS team and the $1B T3 Investment Management Group from Texas. Concurrent followed closely, reporting seven new teams across Ohio, New York, Pennsylvania, Colorado, and California in its Q4 recruiting update.

Commonwealth Financial made one of the largest single hires of the month, bringing on a $3.6B Boston-based team from BNY Mellon led by Chris Martinson and Justin Esposito.

Raymond James continued its recent momentum, adding five teams totaling $903M in assets. The firm also partnered with Bank Midwest to support its $692M Spirit Lake, Iowa-based wealth program.

Other notable leadership moves included Adam Birenbaum’s promotion to CEO of Focus Financial, Eric Freedman’s appointment as CIO at Northern Trust Wealth Management, and Brad Long joining Wealthspire as CIO. Source

RETURN TO TABLE OF CONTENTS

Monroe Capital closed its largest private credit fund to date, raising $6.1B in total investable capital for Monroe Capital Private Credit Fund V, surpassing the $4.8B raised by Fund IV in 2022. The raise includes $2.8B in institutional LP commitments, $1.5B in targeted leverage, and $1.8B in separately managed accounts.

The fund attracted support from more than 90 institutions across 18 countries, spanning public and corporate pensions, sovereign wealth funds, and endowments. According to Dakota data, LPs include the Los Angeles Fire & Police Pension System, Stanislaus County ERA, and Monroe County ERS. “With this capital, we are well positioned to continue delivering consistent performance,” said Monroe Capital President Zia Uddin.

Fund V will provide senior secured financing to lower middle-market U.S. companies with up to $35M in EBITDA, supporting buyouts, refinancings, and growth initiatives. The fund plans to hold 125+ investments, deploying $10M to $150M per deal. Monroe closed 2025 with $3.2B committed to 130 borrowers and ended the year with $23B in AUM across more than 45 vehicles, including direct lending, venture debt, and CLO strategies. Source

RETURN TO TABLE OF CONTENTS