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PitchBook Analyst Note: PE Mega-Fund Strategy Overview: Part I

1Q 2019

PitchBook Analyst Note: PE Mega-Fund Strategy Overview: Part I

March 8, 2019

PitchBook Analyst Note: PE Mega-Fund Strategy Overview: Part I
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Is size an asset or a hazard? The first in a series of analyst notes about PE mega-funds ($5 billion+) aims to answer this question and more about the burgeoning fund strategy.

Key takeaways:

  • Mega-funds are proliferating, accounting for 45.3% of capital raised in North America between 2016 and 2018 and 42.2% in Europe.
  • More niche mega-funds with distinct strategies are appearing, as opposed to the usual multitude of strategies offered by more generalist household name firms.
  • Mega-fund sizes may be reaching a potential ceiling somewhere around the $20 billion-$25 billion mark.
  • Managers are achieving mega-fund status more quickly, forcing LPs to consider allocating to these rising stars.