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