Making Money Minute - May 22, 2026

Making Money Minute with Ron Hiebert - Private Equity Lack of Liquidity Private-equity funds set limits on how much cash investors are allowed to withdraw at any given time. Because they hold illiquid assets, such as private company shares or debt, these funds typically let investors cash out only once a quarter. A problem occurs when requests to sell reach more than 5% to 7% of total assets. The fund will restrict withdrawals and only fill a portion of each request. A problem for Canadian investors comes when they fill plans like Registered Retirement Income Funds with private equity. RRIF’s require withdrawing a certain amount from the plan each year and if those investments are illiquid, the RRIF might not be able to generate enough funds to meet those withdrawals in cash. For more information listen to our Making Money podcast with Ron Hiebert and Graham Hicks at letsmakemoney.ca or CFCW.com.