We say AIFs require patience, but why? Because compounding needs time. In a private company, a new strategy takes 18 months to implement and another 18 months to show results on the balance sheet.
If you force an exit in Year 2, you sell the potential. By waiting for Year 6 or 7, you sell the results. The illiquidity of AIFs is actually a feature that protects you from your own impatience, forcing you to let the magic of compounding work undisturbed.
