Chris Witkowsky

As some portfolio companies have grown beyond expectations, GPs are seeking exit alternatives.

The firm last year brought on Leon Brujis, a former Palladium Equity executive, to lead its New York office.

Instead of a flood of LPs backing away from the asset class, there appears to be some tactical manoeuvring to help institutional portfolios stay in balance.

Some LPs have been frustrated by what they describe as a loophole in the GPs’ ostensible 80-100% management fee offset.

The firm also closed a large secondary deal that raised about $2.1bn, which the firm combines to consider a total fundraising of more than $24bn, sources told affiliate title Buyouts.

Emerging manager fundraising is down, with first-time funds globally raising around $25bn last year, compared with $47.6bn in 2022, according to data from affiliate title Buyouts

In a conversation with Warburg Pincus CEO Chip Kaye, Eneasz Kadziela, the head of private equity with the New York City comptroller, said the frantic fundraising pace of 2021 was something of a burden for LPs.

Two first-time managers at PEI's NEXUS 2024 conference share their experiences of starting their own firms and the challenges they have faced – especially trying to convince limited partners to come on board.

With fundraising sluggish and GPs often desperate for capital, LPs are in a stronger position to demand certain concessions on their ‘no-fee’ co-investments.

State of Wisconsin Investment Board’s head of co-investments discusses the state of the PE market this year and how the slow fundraising environment is impacting things like term negotiations and co-investing opportunities.