GLOBAL - LPs concern over GP strategy shift

Increasingly buyout firms have started to invest in emerging markets, PIPEs or debt due to the limited financing that is available for large buyouts. This has raised concerns among the LP community that GPs are moving into areas and geographies that they don’t know well enough, which could ultimately impact LP returns.

Despite these concerns, however, over a third of the LPs in the survey expect that they will increase their allocations to the asset class. The European buyout market was recognised to have the greatest potential, especially the small (below $200m) and mid-market ($200m to $1bn) segments in low cyclical sectors such as healthcare and technology.

New types of funds like debt vehicles, mezzanine and secondaries were also highlighted to become more favoured in the next twelve months.

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• Topics
• LPs
• UK / Ireland
• DACH
• Nordics
• France
• Southern Europe
• CEE
• Benelux
• Healthcare