Cambridge Associates Private Equity Research Paper

Andrea Auerbach, global head of private investment research at Cambridge Associates, discusses the latest trends seen among private equity firms and strategies, highlighting sector-focused investments, co-investments, and operational expertise among GPs as opportunities for institutional investors. Key takeaways include:

– “Co-investment has become more commonplace. Every fund manager we meet with says they have co-investments available. It’s part of the landscape and it’s not going away anytime soon.”
– “Firms with operating partners should be demonstrating their capabilities in revenue growth, as well as margin expansion. GPs have to prove how their operating partners are improving the businesses and it’s not that easy to do, especially at the larger end of the market.”
– “We don’t expect the proliferation of sector-focused funds to change… The industry is over 30 years old now and continues to evolve towards specialization. Our data shows firms with sector specialization have a competitive advantage. ”

Read the full report here.

Read Cambridge Associates’ sector-focused private investments research paper, “Declaring a Major: Sector-Focused Private Investment Funds,” here.

Read Cambridge Associates’ co-investment research paper, “Making Waves: The Cresting Co-Investment Opportunity,” here.

We have a point of view. One that is borne of weeks and months, sometimes years, of investigation, due diligence, and testing. Here you will find everything from market commentaries and benchmarking data to perspectives on diversification and portfolio construction. We apply a healthy skepticism to new ideas while challenging the old standbys. We aim to incite dialogue, test assumptions, and provide a rationale for our recommendations. Watch us. Understand our perspective. Perhaps you will agree, perhaps not. Either way, we hope you will gain some insights.

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