PE Key Trends Blog

Predicted Attrition in General Partner Ranks Doesn’t Mean Fewer Fund Managers

Feb 26, 2013 5:32:59 PM / by Robert Ientile posted in bubble, private equity, Private Equity Market, V2


Given the prospect raised in a high profile Bloomberg story this month of poor returns from credit bubble vintages pushing one in four private equity general partners out of business over the next five years, it is interesting to consider the 10-year average annual growth rate in the number of general partners. This is useful for getting a sense of whether the high level of attrition mentioned by Bloomberg will actually shrink general partner ranks, and hence limited partner investment choice.

The number of private equity general partners considered active by Palico - those who have completed at least one fundraising in the past decade - stands at 6,463 globally.

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