The gap in the market left by growing private equity funds

Interest in the asset class is clear

As the hunt for yield continues and investors look to alternatives to diversify portfolios, private equity funds have witnessed a boom in interest in recent years.

Despite the pandemic, the interest in the alternative asset class is clear. According to Prequin, more than 450 private equity funds raised $188bn in the first three months of 2021, an increase of 16% on the same period in 2020.  It marks a clear demand for greater diversification from investors and will be welcomed by funds looking to grow - particularly among those incentivised by AUM growth.  However, one result of the growth in the size of many private equity funds has been that they are increasingly forced to look at bigger companies when looking for opportunities to invest.  ...