The nearly six-score first-time fundraisings in Palico’s online private equity marketplace are targeting $13.9 billion. They account for nearly a third of Palico’s 404 fundraising data rooms and one quarter of the $55 billion targeted by those campaigns.
|A Highly Diverse Group of Available Funds|
In a private equity world still dominated by buyout offerings, one of the most noteworthy aspects of first-time funds on Palico is diversity. Out of seven broad fundraising strategies, not one accounts for more than 28 percent by targeted amount. Buyouts come in third, edged out by real estate and infrastructure – a strategy category that produces regular income – and top-ranked growth, a broad domain where many of today’s popular sector specialists are found.
|Emerging Market Regions are Particularly Well Represented|
The Asia-Pacific, the Middle East, Africa and Latin America, the principal emerging market regions of the world, account for 37.8 percent of the amount targeted by Palico’s first-time fund offerings. That’s well beyond emerging markets’ current share of private equity assets under management, and means Palico has an especially broad geographic offering of first-time fundraisings.
|“Hungry” First-Time Managers Often Outperform|
Most first-time managers have gained significant investing experience elsewhere – almost none are novices. They might spin out as an ensemble from an established manager, or, like-minded investment professionals from a variety of general partners might band together. Yet whatever their private equity strategy, and no matter the region they come from, or invest in, first-time managers tend to be “hungry” compared to already established groups. In other words, they are eager to generate above average returns for their investors so that their management team’s share of profit – known as carry – is maximized. With a range of recent studies indicating that the average first-time manager outperforms the typical veteran manager, growing numbers of investors are setting up special first-time manager investment programs.
|Palico’s Marketplace Helps GPs and LPs Transact|
Palico is not just a great place for limited partners to find first-time fund investments, or for newly independent general partners to build a broad base of investors. Every type of private equity fund, and every category of investor – from 140 countries around the world – can be found in Palico’s private equity marketplace.