Kensington Capital Advisors Inc. is proposing changes to a private equity fund, which it says will help it manage the fund’s illiquid nature while creating “a more predictable and transparent redemption process.”
In a release, the alternative asset manager said investors in the Kensington Private Equity Fund — as of Feb. 10 — will be able to vote on the proposed changes at a meeting held in Toronto on March 25.
For one, the firm is proposing the introduction of quarterly redemptions capped at about 5% of outstanding units per quarter, subject to available cash and limitations under the fund’s credit facilities. It said this is meant to align the fund’s liquidity and the liquidity profile of its underlying private assets.
Another proposed change would allow the asset manager to cancel outstanding redemption requests for units which have been tendered for redemption prior to or during the current suspension of redemptions, “in order to facilitate the implementation of the revised redemption framework on a fair and equitable basis.”
Kensington Capital Partners initially suspended investor redemptions of units of its private equity fund on Sept. 30, 2025, due to “market challenges that limited liquidity across the private markets landscape.” It later announced on Dec. 31, 2025 that it was extending the redemption suspension by another 90 days at most.
The firm is also proposing to simplify the fund’s structure by consolidating multiple unit classes into a single class and changing how performance fees are calculated, “such that the manager’s entitlement to the performance fee shall be based entirely on net realized income and net realized capital gains received by the fund without the requirement for a corresponding distribution to unitholders.”
Additionally, it’s looking to make certain amendments to the fund’s declaration of trust to reflect these proposed changes.
“The proposals are designed to provide, among other benefits, a more predictable and transparent redemption process, lower fees for certain unitholders, improved governance and stronger long-term alignment between the manager and unitholders of the fund,” Kensington Capital Partners said in the release.
The move comes in the wake of several other alternative asset managers announcing limits or suspensions to investor redemptions on private-market funds as they navigate liquidity challenges.