Limited Partners taking stakes in GP management companies via specialist funds is becoming a mainstream dynamic in private equity, according to Coller Capital’s latest Global Private Equity Barometer. One in six LPs already invests in this strategy, and this is likely to rise to over a third of LPs.
- 61% of LPs have recently committed to the first closes of PE funds out of fear of being ‘cut back’
- LPs with performance-related pay are three times more likely to deliver outsize PE returns
- Four out of five LPs believe GP-led secondaries will become a routine part of PE
- Even in today’s equity markets, most LPs support select public-to-private acquisitions
David Jolly and Hani El Khoury discuss the impact of performance-related pay and resourcing on private equity returns. LPs in our Summer 2018 Barometer named scarcity of talent and limited resources as the biggest drags on their PE returns.
Adam Black talks about the importance of ESG in private equity
Gerald Carton and Yonatan Puterman discuss private equity fund selection and investors’ strategies for making fund commitments
