Diversification is an important topic and a strong consideration for any portfolio. It can come in many forms. In public markets, geographic diversification is often treated as a default best practice. However, in private equity, there is a compelling case for concentrating exposure exclusively in the United States rather than spreading capital across international markets.

The US remains the deepest, most efficient, and most transparent private equity market in the world. US buyout dominates global private equity, accounting for more than half of all deal activity. It also offers unparalleled depth across sectors, strategies, and company sizes. The US also benefits from the deepest pools of debt capital, the most active and competitive lending market, and robust M&A markets. These elements translate to more attractive targets, more seasoned managers, and more natural buyers at exit.

Performance also supports a US-centric approach. Possessing the strongest and most durable economy in the world, its PE base generally outperforms non-US PE. While certain international vintages or regions may occasionally shine, consistent manager and strategy selection and repeatable alpha generation have been more achievable here. For investors seeking consistent access to top-tier managers, no market offers a broader pool of options.