Would you change your PE job assessing companies to just focus on investing in GP stakes?
Apparently it is a very niche strategy (BX, Dyal+Owl,...), with a decent and stable yield.
In a market where mega funds are dominating, smaller funds that struggle to compete and raise but still with potential may reach the likes of BX or Dyal to partner.
What are your views about this trend?
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I would be surprised if they do it to raise money to invest so much as take some money off the table as equity owners of the firm (as opposed to returns entitlement)
Agree but it seems a trend now. However, it remains to be seen how successful it is in the long term.
Some examples such as Landmark (60% stake) has been put on sale for second time...
GP stakes is about to get really hard as there are a limited number of opportunities left. There is a reason Dyal is investing in expanding its business to NBA and other illiquid investments.
Not that many 5b+ AuM platforms left that aren't either publicly traded or already have GP Stake investors. The ones that don't, have definitely already been pitched, and have decided not to for whatever reason (culture, etc.).
Also the number of GP stake firms is higher than you think - Petershill, Blackstone, Dyal are the main ones. However there are seeding platforms (Wafra, Tetragon, etc.) and other institutional investors in GP Stakes (RDV, CalPERS).
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