The Pulse of Private Equity – 9/10/2018

GP stakes investing—a new trend, or market timing?

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Last week we discussed the rising trend of GP stake sales, which are now officially in record territory in terms of volume. For now, GP stake transactions are highly concentrated in large, top-performing firms. That makes sense—buying a stake in a GP hinges on the GP’s ability to generate fees over time, and high AUMs are a proxy for strong investor demand.