{"id":15359,"date":"2026-10-19T09:00:00","date_gmt":"2026-10-19T13:00:00","guid":{"rendered":"https:\/\/wellington-altus.ca\/?p=15359"},"modified":"2026-11-06T18:11:07","modified_gmt":"2026-11-06T23:11:07","slug":"when-wealth-is-diversified-but-not-liquid","status":"publish","type":"post","link":"https:\/\/wellington-altus.ca\/fr\/when-wealth-is-diversified-but-not-liquid\/","title":{"rendered":"When Wealth Is Diversified But Not Liquid"},"content":{"rendered":"<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:13pt\"><em>A portfolio can contain many assets and still leave an investor without sufficient capital <\/em><\/span><span style=\"font-size:13pt\"><em>at the moment<\/em><\/span><span style=\"font-size:13pt\"><em> it is needed.<\/em><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Even investors with substantial assets can face challenges when they need access to cash. A family may be planning a major home purchase, helping a child with education or wedding expenses, or preparing for a significant tax payment. A business owner may need capital for an acquisition before an expected investment distribution arrives. In each case, the challenge is <\/span><span style=\"font-size:12pt\">that <\/span><span style=\"font-size:12pt\">having sufficient wealth does not necessarily mean having access to the funds when they are needed.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">As private market investments become a more significant part of sophisticated portfolios, the distinction between <\/span><span style=\"font-size:12pt\">diversification<\/span><span style=\"font-size:12pt\"> and liquidity becomes <\/span><span style=\"font-size:12pt\">increasingly <\/span><span style=\"font-size:12pt\">important.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:13pt\">Differentiating Diversification <\/span><span style=\"font-size:13pt\">From<\/span><span style=\"font-size:13pt\"> Liquidity<\/span><\/strong><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Diversification describes how capital is spread among investments and economic exposures. Net worth measures the value of assets after liabilities. Liquidity concerns the amount of capital that can be accessed within a given period and on acceptable terms.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">For example, an <\/span><span style=\"font-size:12pt\">investor may hold<\/span><span style=\"font-size:12pt\"> private equity, private credit, real estate and an operating business<\/span><span style=\"font-size:12pt\">, <\/span><span style=\"font-size:12pt\">yet still depend on a relatively small pool of marketable securities for near-term <\/span><span style=\"font-size:12pt\">financial<\/span><span style=\"font-size:12pt\"> obligations. The portfolio is <\/span><span style=\"font-size:12pt\">diversified across asset classes but offers limited access to cash.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Private investments can provide access to companies, lending opportunities and return drivers that are not available in public markets. Their long holding periods also support longer<\/span><span style=\"font-size:12pt\">&#8211;<\/span><span style=\"font-size:12pt\">term ownership. Those features are valuable precisely because the capital is committed. However, they should not be mistaken for ready liquidity.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:13pt\">Fund Structures <\/span><span style=\"font-size:13pt\">For<\/span><span style=\"font-size:13pt\"> Capital Movements<\/span><\/strong><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">The Financial Stability Board estimated that private credit represented US$1.5 trillion to US$2 trillion in assets at the end of 2024. Its 2026 review recognized the sector\u2019s financing <\/span><span style=\"font-size:12pt\">and diversification benefits, but also identified concerns related to leverage, borrower quality, valuation practices, data gaps and liquidity <\/span><span style=\"font-size:12pt\">mismatches.\u00b9<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Some private funds have finite lives. Investors commit capital that is drawn over time and receive distributions as underlying assets are sold or loans are repaid. Other vehicles offer periodic redemption <\/span><span style=\"font-size:12pt\">windows<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">but<\/span><span style=\"font-size:12pt\"> withdrawals<\/span><span style=\"font-size:12pt\"> may be<\/span><span style=\"font-size:12pt\"> limited when requests exceed a fund\u2019s repurchase capacity.<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">This means that the ability to request a redemption does not guarantee access to the full amount when needed.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:13pt\">The Cost <\/span><span style=\"font-size:13pt\">o<\/span><span style=\"font-size:13pt\">f Accessing Liquidity<\/span><\/strong><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Accessing capital from private investments involve<\/span><span style=\"font-size:12pt\">s<\/span><span style=\"font-size:12pt\"> several considerations:<\/span><span style=\"font-size:12pt\"> <\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0;padding-bottom:0;line-height:1.38;font-size:11pt;margin-left:36pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<div class=\"ul\" style=\"margin-top:0;margin-bottom:0;margin-left:0;margin-right:0\">\n<div class=\"li\" style=\"margin-top:0;margin-bottom:0;margin-left:0;margin-right:0\">\n<div style=\"margin-bottom:0;padding-bottom:0;line-height:1.38;font-size:11pt;margin-left:36pt\"><span style=\"display:inline-block;position:relative;text-indent:-18pt\"><span style=\"position:absolute;top:-0.34em;left:0;font-size:2em\">\u2022<\/span>&nbsp;<\/span><span style=\"font-size:12pt\">An asset may be contractually unavailable until a redemption window or <\/span><span style=\"font-size:12pt\">exit or<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">can <\/span><span style=\"font-size:12pt\">only <\/span><span style=\"font-size:12pt\">be sold<\/span><span style=\"font-size:12pt\"> at an unattractive price. <\/span><\/div>\n<\/div>\n<div class=\"li\" style=\"margin-top:0;margin-bottom:0;margin-left:0;margin-right:0\">\n<div style=\"margin-bottom:0;padding-bottom:0;line-height:1.38;font-size:11pt;margin-left:36pt\"><span style=\"display:inline-block;position:relative;text-indent:-18pt\"><span style=\"position:absolute;top:-0.34em;left:0;font-size:2em\">\u2022<\/span>&nbsp;<\/span><span style=\"font-size:12pt\">A secondary-market buyer could demand a discount to the reported asset value. <\/span><\/div>\n<\/div>\n<div class=\"li\" style=\"margin-top:0;margin-bottom:0;margin-left:0;margin-right:0\">\n<div style=\"margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt;margin-left:36pt\"><span style=\"display:inline-block;position:relative;text-indent:-18pt\"><span style=\"position:absolute;top:-0.34em;left:0;font-size:2em\">\u2022<\/span>&nbsp;<\/span><span style=\"font-size:12pt\">A<\/span><span style=\"font-size:12pt\"> credit facility may provide immediate funding, while also introducing interest expense, collateral requirements and refinancing risk.<\/span><\/div>\n<\/div>\n<\/div>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">The right question is not simply how much liquidity is available. It\u2019s how much can be accessed, when and on what terms.<\/span><span style=\"font-size:12pt\"> Consider this illustrative scenario (see Exhibit): <\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:12pt\">Exhibit: Illustrative <\/span><span style=\"font-size:12pt\">Portfolio Value vs. Accessible Capital<\/span><\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:12pt\">Asset<\/span><\/strong><\/p>\n<\/td>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:12pt\">Value<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Private Equity<\/span><\/p>\n<\/td>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">$4.0M<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Private Credit<\/span><\/p>\n<\/td>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">$2.0M<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Real Estate<\/span><\/p>\n<\/td>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">$2.0M<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Public Securities<\/span><\/p>\n<\/td>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">$2.0M<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:12pt\">Total Portfolio Value<\/span><\/strong><\/p>\n<\/td>\n<td style=\"vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:12pt\">$10.0M<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:12pt\"><br \/>Near-Term Liquidity Position<\/span><\/strong><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"width:8.991181657848324cm;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:12pt\">Item<\/span><\/strong><\/p>\n<\/td>\n<td style=\"width:2cm;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:12pt\">Value<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width:8.991181657848324cm;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Potentially Accessible Capital<\/span><\/p>\n<\/td>\n<td style=\"width:2cm;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">$2.0M<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width:8.991181657848324cm;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Known Near-Term Funding Requirement<\/span><\/p>\n<\/td>\n<td style=\"width:2cm;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">$1.0M<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width:8.991181657848324cm;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Capital Remaining Before Other Obligations<\/span><\/p>\n<\/td>\n<td style=\"width:2cm;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">$1.0M<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">The remaining amount <\/span><span style=\"font-size:12pt\">may<\/span><span style=\"font-size:12pt\"> also <\/span><span style=\"font-size:12pt\">need to cover<\/span><span style=\"font-size:12pt\"> capital calls, taxes, <\/span><span style=\"font-size:12pt\">ongoing <\/span><span style=\"font-size:12pt\">spending and unexpected <\/span><span style=\"font-size:12pt\">expenses<\/span><span style=\"font-size:12pt\">.<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">High net worth does not automatically equal liquid wealth.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"font-size:13pt\">Map Obligations <\/span><span style=\"font-size:13pt\">a<\/span><span style=\"font-size:13pt\">nd Funding Across Time<\/span><\/strong><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Liquidity planning considers how financial obligations and access to capital may change over different time horizons:<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<table style=\"width:100%\">\n<tbody>\n<tr>\n<td style=\"width:25.72%;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"color:#000000;font-size:12pt\">Time Horizon<\/span><\/strong><\/p>\n<\/td>\n<td style=\"width:74.28%;vertical-align:top\">\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><strong><span style=\"color:#000000;font-size:12pt\">Planning Focus<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width:25.72%;vertical-align:top\">\n<p style=\"margin-top:3pt;padding-top:0;margin-bottom:3pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Next 12 months<\/span><\/p>\n<\/td>\n<td style=\"width:74.28%;vertical-align:top\">\n<p style=\"margin-top:3pt;padding-top:0;margin-bottom:3pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Living expenses, taxes, near-term commitments and unexpected expenses<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width:25.72%;vertical-align:top\">\n<p style=\"margin-top:3pt;padding-top:0;margin-bottom:3pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">1<\/span><span style=\"font-size:12pt\"> to <\/span><span style=\"font-size:12pt\">3<\/span><span style=\"font-size:12pt\"> years<\/span><\/p>\n<\/td>\n<td style=\"width:74.28%;vertical-align:top\">\n<p style=\"margin-top:3pt;padding-top:0;margin-bottom:3pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Debt renewals, major purchases, education or family commitments, capital calls and expected distributions<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"width:25.72%;vertical-align:top\">\n<p style=\"margin-top:3pt;padding-top:0;margin-bottom:3pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">More than <\/span><span style=\"font-size:12pt\">3<\/span><span style=\"font-size:12pt\"> years<\/span><\/p>\n<\/td>\n<td style=\"width:74.28%;vertical-align:top\">\n<p style=\"margin-top:3pt;padding-top:0;margin-bottom:3pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Long-term investments<\/span><span style=\"font-size:12pt\">,<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">retirement income needs and capital that can tolerate uncertain exit timing<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:7pt;padding-bottom:0;line-height:1.3;color:#000000;font-size:10.5pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">The relationship between financial obligations and available capital can change considerably over time.<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">E<\/span><span style=\"font-size:12pt\">xpected fund distributions, capital calls, business cash flows and other funding sources<\/span><span style=\"font-size:12pt\"> all influence liquidity<\/span><span style=\"font-size:12pt\">.<\/span><span style=\"font-size:12pt\"> <\/span><span style=\"font-size:12pt\">Delays in investment exits or several financial obligations arising simultaneously can create additional pressure, even for investors with substantial assets.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:12pt\">Wealth measures what an investor owns; liquidity determines how much freedom that wealth provides. <\/span><span style=\"font-size:12pt\">Whether the objective is funding retirement, supporting family members or meeting investment commitments, the timing of access to capital matters. Understanding how anticipated expenses align with available funds can help preserve financial flexibility and reduce the likelihood of having to sell long-term investments at an unfavo<\/span><span style=\"font-size:12pt\">u<\/span><span style=\"font-size:12pt\">rable time.<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:9pt\">Sources<\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"><span style=\"font-size:9pt\">1. <\/span><a href=\"https:\/\/www.fsb.org\/2026\/05\/report-on-vulnerabilities-in-private-credit\/\"><span style=\"text-decoration:underline;color:#467886;font-size:9pt\">Financial Stability Board, Report on Vulnerabilities in Private Credit<\/span><\/a><\/p>\n<p style=\"margin-top:0pt;padding-top:0;margin-bottom:0pt;padding-bottom:0;line-height:1.38;font-size:11pt\"> <span style=\"display:inline-block;height:1em\"><span style=\"display:none\">.<\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>A portfolio can contain many assets and still leave an investor without sufficient capital at the moment it is needed.<\/p>","protected":false},"author":14,"featured_media":15348,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60],"tags":[79],"class_list":["post-15359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-wealth-planning","tag-english"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - 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