In the early days of PE, sponsors were pretty limited as to the types of liquidity options available to them during economic downturns. As the industry has matured, however, lenders have become more sophisticated and opened up new, useful avenues of financing. At the same time, LPs have become more sophisticated and amenable to exploring co‑investing and GP‑led restructuring options that can offer sponsors more access to capital. To discuss those financing and external capital sources, as well as other ways PE sponsors can navigate a recessionary environment, the Practising Law Institute recently hosted a program that was moderated by Paul Weiss partner Lindsey L. Wiersma and featured Ross Oliver, partner and GC at Crestview Partners; and Kirkland & Ellis partner August Sangese. This second article in a two-part series identifies how fund managers can use leverage and outside capital sources to bolster liquidity during an economic downturn. The first article described various fund provisions that can facilitate increased liquidity and offered suggestions for how managers can approach the process of working with LPs to favorably amend those provisions. See “How Key PE Fund Terms Are Being Shaped by Current Fundraising Challenges, Liquidity Needs and Distinct Shifts in the Market” (Feb. 9, 2023); and “PE in a Recession: Tips for Tailoring Fundraising Efforts, Anticipating Demand for Secondaries and Managing Co‑Investments (Part One of Three)” (Sep. 20, 2022).