Is a decline in the alternative investments industry (including PE) inevitable?

Putting aside the recent performance of the industry at large (these past few years have been unusual times, after all), it seems to me like the precipitous decline in the popularity of defined benefits pension plans will necessarily mean that the asset managers that depend most heavily on them for their LP base (i.e., PE, VC, HF) will also have to shrink. Am I missing something here? What LP's are going to pick up the slack over the next, say, decade or two, as the number of defined benefits pension plans continues to shrink? It can't be easy replacing LP's with such deep pockets.

Of course, this would be a slow process, if the original premise is correct at all, but it seems inescapable.

 

Foreign pension plans picking up the slack is an interesting thought, which I hadn't really considered before. HNW making up the shortfall in domestic DB pensions is unrealistic. Even the richest Americans can't afford to write billion dollar checks the way the largest pensions do regularly.

 

Agree. Too much money and too few good deals in general.

Entry valuation is getting bid up and exit valuation is getting beaten down. Many zombie investments and funds as well.

Need to see a number of low quality firms getting wiped out and legitimate players getting downsized in order to get the industry into a normal and healthy stage again.

Right now, it is clearly overheating.

 

Magnam aut non nihil consequuntur et. Odit et ullam aspernatur nihil ut vel. Error aut quae aperiam esse deleniti consequatur. Totam eum doloremque rerum dolor corrupti amet ut. Numquam cupiditate error similique voluptate a. Adipisci itaque labore animi vero placeat dolorem magni.

A illum laboriosam reprehenderit. Quos fugiat beatae quae ea facere soluta in.

Dolores quia aut voluptate id. Nisi cumque in sed ab recusandae accusantium cum. Numquam magni ut molestias earum.

Career Advancement Opportunities

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Warburg Pincus 99.0%
  • Blackstone Group 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

March 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

March 2024 Private Equity

  • Principal (9) $653
  • Director/MD (21) $586
  • Vice President (92) $362
  • 3rd+ Year Associate (89) $280
  • 2nd Year Associate (204) $268
  • 1st Year Associate (386) $229
  • 3rd+ Year Analyst (28) $157
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (313) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”