The 100 largest private equity fund managers and investors are playing an increasingly prominent role in the industry, alternatives data provider Preqin reported this week.
The biggest managers can raise ever-larger funds quickly, offer investors a wide range of structures and vehicles, set competitive fees and outbid their smaller counterparts.
Large institutional investors can influence fee rates, demand access to direct and co-investments and spur the growth of fund managers.
A recent Preqin report showed that the private equity industry’s total assets under management grew by 4.2% from the end of December 2015 — for the eighth consecutive year — to a new record of $2.5 trillion as of June 2016, more than double the size of the industry at the end of 2006.
Many industry participants expect growth to remain on an upward trajectory over the next 10 years, thanks to strong demand — a median $7 trillion, implying an annual growth rate of 5.8%, SEI Investor Management Services reported in November.
Top 100 Managers and Investors
Preqin’s top 100 report showed that the biggest private equity managers had raised $1.5 trillion from investors over the past 10 years and were holding $494 billion in dry powder.