In an environment where economic and political concerns worldwide have introduced uncertainty into global financial markets, we've seen PE deal flow begin to decelerate. Nonetheless, GPs are still chasing deals, and as with most cycles, pockets of opportunity tend to surface in these later stages. With this paradigm, new fund managers may also surface, looking to help LPs take advantage of these pockets. But securing commitments from LPs can be an uphill battle, especially when volatility spikes and these investors have to manage their respective allocations.
At PitchBook, we track all angles of the fundraising path to help managers pinpoint where they may have the greatest opportunity in securing commitments. Further, we recently connected with Eric Zoller, co-founder and partner at Sixpoint Partners, to learn more about how his firm is advising clients at a time where LPs have already contributed to a record amount of dry powder.
"While the environment is robust, fundraising is not treating everyone the same," Zoller said with regard to challenges firms are facing. "There is still a wide range of GPs that very much need help fundraising, either because they haven’t been in the market for a while or they need help telling their story."