PE guys, is this a sign of troubled fundraising? I know deal flow is tight right now (at least in the MM), so is this a lack of appetite amongst LPs?
http://www.bloomberg.com/news/2013-03-13/carlyle-allows-investors-in-ne…
Sounds like Pensions are fading as large investors.
Maybe. I'm more inclined to think they're trying to take advantage of the retail crowd a la Apple and facebook
Retail investors have lower expected returns than institutional investors IMO (no access to alternative investment strategies).
But, you still have to be an accredited investor to pony up the $50K if I understand correctly.
I wouldn't necessarily say trouble fundraising. Several of the PE firms have been able to successfully raise money from sovereign wealth funds.
If anything, one PE CEO told a group of us that there's a large pool of "mass affluent" who have a large pool of capital to invest and want better than the sub-par returns in the rest of the market. $1 trillion has been flowing into 401k alternative investment funds.
Also, giving the example that the QIB excludes potentially brilliant policemen and teachers who've taken the time to understand the market, but under the current definition an idiot who inherits his/her money is considered a "qualified investor"
This just opens up more distribution channels - it could be a sign of poor fundraising, but at the same time, it offers a great new pool of investors
Similar to an IPO. That's two moves in the past year or so that make me wonder if there is a fundraising issue.
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