The evolution of GP stakes during the COVID-19 crisis

Despite increasing market volatility amid the COVID-19 crisis, the GP staking investment strategy—which typically involves specialized PE firms taking a passive minority stake in another general partner (GP) management company—has continued to expand rapidly. There are currently more than a dozen firms raising well over $20 billion for the strategy worldwide.

Join PitchBook analysts for a discussion on how GP stakes investors are responding to the current market environment as well as what opportunities and pitfalls the pandemic has introduced to the competitive landscape.

Topics include:

  • Sourcing GP stakes opportunities—where the largest GP stakes players will be sourcing investments, even when a large amount of capital has already been deployed
  • Mapping the competitive landscape—including supply-demand balances, deal sourcing, expected returns and exit strategies by market segment
  • Understanding the evolving market segments of GP stakes investing—including how each segment’s investment characteristics differ and identifying the major firms involved
  • Ensuring LP/GP alignment—by looking at how securitizing management fees can help lead to a better alignment of LP/GP incentives while providing GPs with capital to expand their GP commitment and possibly expand strategy offerings

We also look at what lies ahead for the GP staking strategy in the context of COVID-19 and continued market volatility.

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