80% of Private Equity Raised by 20% of GPs Emerging Managers Can Create Level Playing Field

NEW YORK, July 2, 2018 /PRNewswire/ -- CEPRES today released their latest analytics of the private markets landscape showing the increasing dominance of the largest private equity firms on their PE.Analyzer investment network. Of 5,195 funds active on the platform, 80% of the capital is now being raised by only 20% of larger GPs compared with a 50/50 ratio 15 years ago. Large fundraisings are dominated by North American buyouts, venture still attracts smaller funds, especially in Asian and undeveloped markets. Emerging managers (1^st and 2^nd time funds) have been squeezed in recent years and need to use all the tools in their arsenal to compete. Fortunately the CEPRES analysis shows that on average 1^st and 2^nd time funds outperform mature managers, so new and spinout GPs can compete on a level playing field with the right evidence.

Highlights:

• Analysis of 5,195 funds, 59,126 companies and $20.6 trillion of private investments
• North America Buyouts dominate the fundraising landscape
• Asia and emerging markets offer more diverse fund sizes than western markets
• Venture is still most active with small to medium funds
• Larger funds currently offer the strongest median returns, but smaller funds provide more upside
• Private market risk as measured by deal default rates is low, but starting to trend upwards

The full report is available to CEPRES members from: https://www.cepres.com/latest-intelligence

Commentary:

"The activity on the PE.Analyzer network confirms the dominance of larger brand name funds in the fundraising landscape. The good news for emerging managers is we see the upside that can be generated by  1^st and 2^nd time funds, so institutional investors waiting for managers to mature may be missing some portfolio alpha. We have seen that as private equity allocations have increased, the market has matured and risk is better managed. Conversely some of the market fundamentals like leverage, pricing and revenue growth are weaker and warrant consideration for current investment decisions."

Chris Godfrey, President CEPRES Corp.

About PE.Analyzer

PE.Analyzer is an online investment decision network for private markets. It delivers easy and powerful due diligence and portfolio analysis to 1,000s of institutional LPs and GPs encompassing 59,000+ private market investments and portfolio companies worth $20.6 trillion USD. It is the only platform providing Technical & Fundamental benchmarking of private deals and portfolio companies to institutional investors and fund managers to underwrite their investment decisions and support their fundraising goals.

About CEPRES

CEPRES is an innovative FinTech company helping investors and fund managers in private markets become stronger investment professionals through advanced tools, thought leadership and deep investment data. Through CEPRES, Investors (LPs) and fund managers (GPs) can interact on a single, confidential platform in complete privacy. LPs gain deep market insights, forecast investment outcomes and enhance due diligence to drive better investment returns. GPs can manage their track record, precisely benchmark their deals and find new sources of capital from around the world. For further information, visit www.cepres.com.

For more information about this release, or to schedule an interview:

Contact: Miruna Aftenie

Tel: +49 (0) 89 232 4956 13

Email: [email protected]

SOURCE CEPRES Corp

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