Latest news with #LPs
Forbes
14 hours ago
- Business
- Forbes
Private Markets' AUM Growth Slowing—Are We Measuring The Right Thing?
The headline number suggests a slowdown. But look closer, and the story is less about deceleration and more about a shift in where—and how—capital is flowing. Investor sentiment remains strong. McKinsey's latest survey of leading limited partners (LPs) shows continued appetite to increase allocations to private markets. The apparent contradiction between tepid AUM growth and rising investor intent points to a deeper question: Are we measuring the right thing? Traditional AUM metrics tell only part of the story. While closed-end funds declined 1% in 2024, this misses how GPs are tapping new capital sources. Alternative forms of capital—from separately managed accounts to co-investments—now represent nearly one-third of total private market assets, revealing a healthier 6% growth rate when properly measured. The data reveals the industry's true scale: alternative capital has grown to more than half the size of traditional funds. Add it all up, and you get $22 trillion in total private market assets for 2024—with these newer structures driving most of the 6% growth. Stick to the old way of counting, and you're missing how dynamic this industry has become. This shift reflects three fundamental trends reshaping how capital flows into private markets: 1. Higher-liquidity products — From evergreen funds and interval funds to non-traded REITs and BDCs, these vehicles provide investors—both retail and institutional—greater flexibility. Think of them as private market investments you can get in and out of more easily, rather than locking your money away for years. Their AUM, now $1 trillion to $1.5 trillion, has grown roughly 16 percent annually since 2020. 2. LP-demand-driven offerings — Separately managed accounts (SMAs) and co-investments give LPs more influence, tailored exposure, and often lower fees. These are 'have-it-your-way' private market deals where big investors can choose their own mix and terms, instead of taking the same package as everyone else. SMAs have grown 16–18 percent annually; co-investments 20–25 percent annually since 2020. 3. Permanent capital — Once the domain of insurance allocations, permanent capital is increasingly a balance-sheet strategy for GPs acquiring insurers. This is money that never has to be returned, letting managers invest with a truly long-term view. Leading managers have amassed $1.5–$2 trillion in these long-duration pools, growing 10 percent annually. The takeaway: Traditional AUM is no longer a sufficient proxy for market health. Measuring only closed-end vehicles is like assessing GDP by counting only manufacturing output—it misses where growth is happening. For investors, this broader definition reveals a larger, more diverse opportunity set. For GPs, it underscores the imperative to innovate product structures, expand access, and match capital to investor needs. The call to action is clear: Industry leaders should redefine AUM to include both traditional and nontraditional sources. Doing so will not just reflect the market's true size—it will signal to investors, regulators, and participants that private markets are evolving into a more accessible, flexible, and resilient asset class poised for the next era of growth. -- Maurice Obeid is a senior partner in McKinsey & Company's New York office. He thanks colleagues , Alexander Edlich (New York Senior Partner), Fredrik Dahlqvist (Stockholm Senior Partner), Christopher Croke (London Partner), Warren Teichner (New York Senior Partner), Andrew Shearer and Christina Hong (McKinsey Communications), and Sadie De Col (Senior Business Analyst) for their contributions to this article.
Entrepreneur
4 days ago
- Business
- Entrepreneur
The Investment Strategy That's Reshaping Private Equity
Co-investing is the quiet edge that builds better funds. Smart investors use it to scale faster, de-risk smarter and deepen trust. Opinions expressed by Entrepreneur contributors are their own. In private equity, the smartest general partners (GPs) are realizing that co-investments aren't just a fundraising sweetener; they're a strategic lever. Done right, they strengthen the portfolio, deepen LP relationships and reduce overall risk exposure. Yet many GPs still treat co-investing as an afterthought rather than a core element of fund strategy. In today's climate, where LPs are more selective, underwriting standards are higher and trust is harder to earn, co-investments can be the edge that separates high-performing GPs from the pack. Here's how the most sophisticated firms are using co-investing not just to raise capital, but to build resilient portfolios and tighter LP alignment. Related: The Collaboration Between Limited Partners and Growth Partners: Investors' Perspective Why co-investments matter more than ever The co-investment market has matured rapidly over the past decade. According to Preqin's Global Private Equity Report, nearly 70% of LPs now expect co-investment opportunities from their fund managers. This demand is no longer limited to mega-institutional family offices. Sovereign wealth funds and even smaller foundations are seeking ways to increase exposure to direct deals while lowering blended fee structures. Meanwhile, a 2023 report from PitchBook emphasized that co-investment volume is rising even in volatile markets, fueled by LPs looking for more control, lower fees and deeper access to quality deals. For GPs, this presents both a challenge and an opportunity. The challenge: Co-investments can strain internal resources and slow deal execution if not managed well. The opportunity: When built into the fund's operations and strategy from day one, co-investments enhance portfolio flexibility, attract strategic LPs and reduce concentration risk, all without diluting fund governance. Co-investing as a tool for portfolio construction Smart GPs treat co-investment capacity as part of their capital stack, not a separate, ad hoc offering. This mindset allows them to: Pursue larger deals than the fund alone could support, without increasing fund-level concentration. Add diversification by allocating fund capital to core positions and inviting co-investors into adjacent or higher-risk assets. Act quickly on opportunistic deals by pre-qualifying LPs who can co-invest with short notice. Let's say your $100M fund is targeting 10 core platform deals of $10M each. You come across a $25M acquisition that fits the thesis but exceeds your single-asset exposure cap. With co-investment capital lined up, you can still lead the deal, funding $10M from the fund and $15M from co-investors. This approach maintains portfolio balance while giving LPs direct access to a larger asset. More importantly, it builds your reputation as a GP who brings access, not just capital. For a case study of this dynamic in action, this piece from Hamilton Lane illustrates how co-investments have become an essential tool in modern private market strategy. Related: The Risks And Rewards Of Direct Investment For LPs Reducing risk while increasing ownership One underappreciated benefit of co-investing is how it allows GPs to retain control of high-conviction assets without overexposing the core fund. In many cases, the most attractive deals are also the most capital-intensive. Without co-investment partners, a GP must choose between taking a smaller slice or over-allocating from the fund. By bringing in co-investors, GPs can secure majority or lead positions while staying within prudent limits. This improves control over governance, exit timing and value creation plans, all critical levers in reducing downside risk. Additionally, co-investing can be a powerful tool in navigating market cycles. During downturns, GPs can selectively syndicate capital-heavy deals to preserve dry powder, while still deploying into discounted opportunities. The BVCA's 2023 Private Equity Guide offers insights into how firms are adjusting their co-investment behavior during a recession. The operational backbone of a co-investment strategy Of course, offering co-investments isn't just about having the deal flow. The GPs who excel at this have built internal systems to handle: Legal structuring: Quick SPV setups, allocation mechanics and clear governance roles LP segmentation: Understanding which investors have the appetite, capacity and decision-making speed to co-invest Data sharing: Secure, real-time access to diligence materials and post-investment reporting Compliance and fairness: Ensuring transparent allocation that doesn't disadvantage the core fund This operational backbone is often the difference between firms that "can" offer co-investments and those that do so consistently, cleanly and at scale. For GPs looking to mature their fund ops, platforms like Carta and Juniper Square simplify co-investment administration, LP communications and investor onboarding. More advanced GPs are also using tools like Passthrough to streamline subscription documents or Anduin for automated investor workflows. Co-investment fosters lasting trust From an LP point of view, we see co-investing as a way to display confidence and alignment. It gives them more say, more return and often a larger role at the table. When done fairly, it turns your investors into what they are — full partners. In a world that is becoming more relationship-based in terms of fundraising, GPs who put in consistent, thoughtful co-investments are at an advantage. Retain top LPs in future funds. Convert one-time investors into anchor commitments. Win allocations in competitive fundraising cycles. According to HarbourVest's 2023 LP Survey, nearly 80% of LPs reported higher satisfaction and trust in managers who offered co-investment access, especially when the deals performed well and were communicated transparently. Related: Why Direct Investments By LPs Are On the Rise A word of caution: Don't over-promise With all its advantages, co-investing is not a silver bullet. When used excessively or poorly, it may bring execution risk, create inefficiencies and bring LPs into conflict. The most common shortcomings are: Providing too much in co-investments, devaluing their quality Granting favors with allocations Procrastinating closings from side deal logistics Failing to coordinate internal bandwidth to handle the complexity The best firms are selective. They set expectations with LPs early, often in the PPM or DDQ, and focus on quality over quantity. One excellent co-investment that delivers a win can be more powerful than five rushed ones that don't perform. Co-investments are no longer optional; they're a defining feature of modern private equity. But the edge doesn't come from offering them. It comes from integrating them into your portfolio construction, risk management and LP strategy. The smartest GPs know this. They use co-investing not just to fill out a cap table, but to build durable LP relationships, de-risk big bets and unlock operational agility. As fundraising becomes more competitive and LPs demand more from their managers, those who treat co-investing as a core fund ops capability, not a last-minute offer, will stand out.
Time of India
12-08-2025
- Business
- Time of India
Speciale Invest's Fund III closes at Rs 600 crore; eyes investing in 18-20 deeptech startups
Deeptech investment firm Speciale Invest said its Fund III was oversubscribed, closing at Rs 600 crore against a target of Rs 500 crore. The new fund will invest in sovereign tech and globally scalable intellectual property (IP) from Chennai-based venture capital (VC) firm said it will back 18-20 early-stage deeptech startups in sectors such as artificial intelligence (AI) infrastructure, spacetech, climatetech, quantum systems, advanced manufacturing, and dual-use defence. The initial ticket sizes will range from Rs 7 to Rs 10 crore, with the flexibility to go higher in some Rajaram, managing director at Speciale, said the interest of institutional investors, family offices, and HNIs in the deeptech sector has grown significantly. 'Over 50% of Fund III capital is from repeat Limited Partners (LPs), and we also have new institutions and corporate VCs,' he told said conviction in India's deeptech opportunity has strengthened. The firm will continue to invest in 'zero to one' startups at the pre-seed level. So far, the VC firm has bet on startups such as Agnikul Cosmos, GalaxEye, ePlane Company, Ultraviolette, CynLr, and QNu Labs. It has also made nine mergers and acquisitions (M&A) exits.'A large learning from our Fund I and II has been that this is the best time to build sovereign-edge technologies in the country and begin serving global needs,' said Speciale's Rajaram. He added that India's geopolitical position also calls for reducing dependence on certain foreign technologies. Out of the Rs 600 crore fund, Rs 300 crore will be reserved for follow-up is not the only fund to focus on IP and advanced manufacturing. Last week, Accel announced a significant shift in its theses, eyeing IP-driven startups in sectors like aerospace, electric vehicle (EV) components, and medical devices. The firm, in January, announced an early-stage fund of $650 million, specifically for startups in India and Southeast its Fund III, Speciale intends to increase the average ownership in startups. 'In Fund I, we owned about 5% of each company; in Fund II, around 10%; now, with Fund III, we'll target about 15%. The round sizes and company stages stay the same, but we aim for more ownership and a larger follow-on capital reserve of about 50%,' Rajaram said, who earlier was a principal at Ventureast, a $100 million early and growth stage capitalists noted that with startups thinking global first and looking at selling in global markets from day one, the existing timelines may come down by a year. Despite the growing trend, Rajaram reiterated that deeptech will need a long gestation period, and for a 'good exit, one that can return the fund, it will typically take 6-10 years.'
Yahoo
03-07-2025
- Business
- Yahoo
Asset Managers: Blockchain Can Modernize Your Operations and Reinvigorate Your Product Line
As an advisor to both TradFi and crypto native firms, one trend I'm excited about is the potential of blockchain and tokenization to help asset managers serve the next generation of investors. These financial institutions pride themselves on navigating complexity and pursuing innovative strategies. They manage trillions across private equity, credit, venture, and real assets. But for all their sophistication in portfolio construction, many still rely on infrastructure better suited for the fax machine era. Investor records are kept in spreadsheets. Capital calls go out over email. Waterfall calculations are done manually. LPs get quarterly PDFs and little else. The technology stack underneath these firms is fragile, opaque, and overdue for a serious upgrade. Blockchain isn't a speculative detour; it's a modern financial operating system. And for asset managers, it offers not just an opportunity to modernize fund administration and operations, but also to unlock new frontiers in product offerings to better serve their existing and future client base. The average investment firm still relies on a tangle of administrators, custodians, and transfer agents, each working from their own systems and reconciling records by hand during each stage of a fund's lifecycle: inception, setup, fundraising and onboarding, operations, trading and liquidity, and closing. Because much of this process is manual and bespoke, mistakes happen, delays are common, and transparency is low, while the cost of compliance and administration continues to rise. Blockchain and tokenization solves for these inefficiencies by standardizing workflows across multiple participants. A permissioned ledger, shared between GPs, LPs, fund admins, transfer agents, auditors, and more, can become the single source of truth for investor accounts, capital flows, and transaction history. Instead of fragmented systems, siloed information, and weekly reconciliations, everyone operates from the same data, updated and visible in real time. Smart contracts can automate capital calls, distributions, and even complex waterfall logic, ensuring that the correct payments go to the correct counterparties, instantly and transparently. And the tokenization and interoperability of different asset types can enable automated, instantaneous settlement. No PDFs, wire delays, and human error. These aren't gimmicks – they're operational upgrades. Investors can hold digital fund shares, settle redemptions in stablecoins, and track yield accrual in real time. For cash management, it's a game-changer. For operational teams, it means fewer bottlenecks and cleaner audit trails. Blockchain and tokenization aren't just about liquidity, but an opportunity to replace a clunky patchwork of systems with a streamlined, programmable foundation for fund operations. If blockchain is already modernizing fund infrastructure, the next frontier is even more exciting: using the technology to build products that couldn't exist before. Start with tokenized private credit. Just look at Apollo's tokenized private credit fund, which has moved more than $100 million on-chain and exists simultaneously on multiple blockchains, making it interoperable with digital custody systems. Or, Franklin Templeton's Benji platform, where tokenized money market funds live across numerous blockchains, allowing its investors to transfer shares peer‑to‑peer with stablecoins, earn intraday yield down to the second, and access tokenized money‑market liquidity. Meanwhile, BlackRock's tokenized institutional money market fund has already surpassed $2.5 billion AUM a year after its launch. These products offer more than operational improvements; they allow fractional ownership, secondary liquidity, and a radically more accessible wrapper for investors who want exposure to these products without the commitment of a traditional LP structure. The most forward-looking firms are going even further: building entirely new kinds of on-chain products. Take on-chain yield vaults, a relatively new primitive in crypto, which are like a self-executing investment strategy. Companies like Veda Labs are pioneering smart contracts that stake tokenized assets, sell covered calls, lend to protocols, or arbitrage rates across DeFi, allowing institutions like asset managers to offer white-labeled, branded investment strategies that automate execution while embedding compliance and fee logic directly into the protocol. No spreadsheets or intermediaries, just composable, auditable investment products built for digital-native allocators. Instead of relying on opaque NAV calculations, returns can be verified on-chain. Put simply: this is a new category of investment product. More transparent than an ETF, more automated than a hedge fund, and infinitely more programmable than any legacy wrapper. Asset managers don't need to abandon what they're good at. But they do need to modernize how and what they deliver. Blockchain isn't a threat to private markets; it's the upgrade private markets have been waiting for. A way to clean up back-office complexity, lower operational risk, and serve clients with products that are faster, smarter, and more productive. The tools are ready. The infrastructure is live. And the first movers have already shown what's possible. Asset managers who ignore this innovation risk getting left behind – because while others are still sending capital calls by email, the next generation of investment platforms is already being built: on-chain, in real time, and at scale. 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Yahoo
26-06-2025
- Entertainment
- Yahoo
Bruce Springsteen 'Tracks II: The Lost Albums' is expansive and remarkable: Review
Bruce Springsteen has a broken heart. You can hear it in his expressive voice on the 'Twilight Hours' and 'The Streets of Philadelphia Sessions' LPs, part of the expansive and remarkable 'Tracks II: The Lost Albums,' available Friday, June 27. Now we don't think the Boss really has a broken heart, but the broad material on 'Tracks II' lets Springsteen delve into the sweet subject of heartache — and it's a joy. The Boss, like Al Jolson, can sing with a tear in his voice. 'Blind Spot' from 'The Streets of Philadelphia' finds the protagonist looking for redemption in love, and Springsteen's voice finds the space between yearning, lust and fatalism. The gorgeous 'Late in the Evening' from 'Twilight Hours' is a soaring ballad of late-night solitude for which Springsteen unloads a magnificent vocal performance with sustained notes, tremolos and the aforementioned Jolson teardrop. The Springsteen love songs have been, to this point, largely about lovers about to consummate their relationship. Think of the couples of 'Thunder Road' and 'Fire.' On 'Tracks II,' we get glimpses of what happens after the initial spark. There is a lot to unpack on 'Tracks II,' ostensibly a sequel to 1998's 'Tracks.' On 'Tracks II,' there are 83 songs on seven full albums recorded between 1983 to 2018, and it's quite a lot more than relationship songs. There's an atmospheric soundtrack to an unmade spiritual Western movie called 'Faithless,' recorded in 2005 and 2006; a sparse and evocative collection of border songs called 'Inyo,' named after the California county and inspired by 1995's 'The Ghost of Tom Joad'; 'LA Garage Session '83,' a collection of lo-fi rockers and atmospheric ballads recorded 'Nebraska' style in 1983 that is a treasure trove; and 'Somewhere North of Nashville,' recorded in 1995, filled with rocking Texas country songs. 'Perfect World' is a rocker sparked by Joe Grushecky co-compositions. The tracks date back to 1994. 'The Streets of Philadelphia Sessions,' a meditation on the meaning of trust in a relationship, was recorded in 1994, and is as close as we'll get to the album by Springsteen and his 'Other Band,' who played more than 100 shows with the Boss in 1992 and '93 when the E Street Band was disbanded. Zack Alford, Tommy Sims and Shane Fontayne all appear on 'Philadelphia Sessions,' which has wrongly been referred to as a 'hip-hop' album. 'Twilight Hours,' the strongest album in the collection, is a companion to 2019's 'Western Stars,' according to the 'Tracks II' liner notes, and was recorded in a 1960s orchestra pop style in 2010 and '11 as a nod to the repertoire of the Burt Bacharach and Hal David classics. 'Because I love Burt Bacharach and I love those kinds of songs and those kinds of songwriters,' says Springsteen in the liner notes. 'I took a swing at it because the chordal structures and everything are much more complicated, which was fun for me to pull off.' So why seven albums now? Each work has its Bruce-ian reason for not being previously released. 'The Street of Philadelphia Sessions' was too much of a 'relationship' album to come after the similarly-themed 'Tunnel of Love,' 'Human Touch' and 'Lucky Town.' 'LA Garage Sessions' was held back for another record: 'Born in the USA.' 'I've always released my records with great care, making sure my narratives built upon one another,' Springsteen says in the liner notes. 'I'm glad I did, as it usually assured the best of what I had came out, weaving a clear picture in my fans' minds of who I was and where I was going in my work life at that moment. The records in this collection did not comfortably fit into that narrative, my creative arc.' There is so much here, such variety and quality, that new narratives will be born on June 27. The Boss goes back to rock 'n' roll roots on 'LA Garage Sessions' with 'Little Girl Like You,' a Buddy Holly homage and, and 'Don't Back Down,' which echoes early Beach Boys. A pre-''Born in the USA' 'My Hometown' is here, sung in a higher key than the 1984 version. It's one of several songs on 'Tracks II' that have been released in different versions elsewhere. 'The Klansman' from 'LA Garage Sessions' is a compelling and driving rocker, unsettling in lyrical content and more than 40 years later more topical than ever. Marty Rifkin, a member of the Seeger Session Bands, lights up 'Somewhere North of Nashville' on his steel guitar, sizzling on 'Repo Man' with E Street (and Seeger Sessions) keyboardist Charles Giordano. Rifkin also gives a warm prairie echo to a cover of the Johnny Rivers classic 'Poor Side of Town.' First heard on 'Western Stars,' the song 'Somewhere North of Nashville' is given the Rifkin and Giordano treatment, and it sweetly aches. The stark 'Inyo' has several gems, including 'The Lost Charro,' which evokes Marty Robbins when trumpets ring in glory as fatal circumstances befall a noble hero. In 'Ciudad Juarez,' a daughter vanishes into the streets as told in this haunting ballad. 'Inyo' is set on the borders of California and Texas with one exception: 'Our Lady of Monroe.' The song takes place in Monroe, about 15 miles west of Springsteen's Freehold hometown, and it's a testament to Springsteen's eyes and ears as an artist that he gets it exactly right. Yes, it's very plausible that a retired Newark cop would come to live in one the senior communities in Monroe to try 'to lose some of what he'd seen' on duty. 'Another Thin Line,' co-written with 'Grushecky' from 'Perfect World,' is rocker that hits the mark with authority. "Cutting Knife' features a Springsteen rarity: a near-falsetto Boss on the chorus. The trusty E Street glockenspiel chimes in, this time played by co-producer Ron Aniello, and it's at once familiar and enticingly fatalistic. Like fellow Jerseyan Walt Whitman, the Boss contains multitudes. Prices for 'Tracks II: The Lost Albums' range from $14.98 for the companion CD, 'Lost And Found: Selections from The Lost Albums,' to $349.98 for the box set in vinyl format. Visit for more information. Follow That Dream Don't Back Down On Our Love Little Girl Like You Johnny Bye Bye Sugarland Seven Tears Fugitive's Dream Black Mountain Ballad Jim Deer County Fair My Hometown One Love Don't Back Down Richfield Whistle The Klansman Unsatisfied Heart Shut Out The Light Fugitive's Dream (Ballad) Blind Spot Maybe I Don't Know You Something In The Well Waiting On The End Of The World The Little Things We Fell Down One Beautiful Morning Between Heaven and Earth Secret Garden The Farewell Party Faithless The Desert (Instrumental) Where You Goin', Where You From All God's Children A Prayer By The River (Instrumental) God Sent You Goin' To California The Western Sea (Instrumental) My Master's Hand Let Me Ride My Master's Hand (Theme) Repo Man Tiger Rose Poor Side of Town Delivery Man Under A Big Sky Detail Man Silver Mountain Janey Don't You Lose Heart You're Gonna Miss Me When I'm Gone Stand On It Blue Highway Somewhere North of Nashville Inyo Indian Town Adelita The Aztec Dance The Lost Charro Our Lady of Monroe El Jardinero (Upon the Death of Ramona) One False Move Ciudad Juarez When I Build My Beautiful House Sunday Love Late in the Evening Two of Us Lonely Town September Kisses Twilight Hours I'll Stand By You High Sierra Sunliner Another You Dinner at Eight Follow The Sun I'm Not Sleeping Idiot's Delight Another Thin Line The Great Depression Blind Man Rain In The River If I Could Only Be Your Lover Cutting Knife You Lifted Me Up Perfect World Subscribe to for the latest on the New Jersey music scene. Chris Jordan, a Jersey Shore native, covers entertainment and features for the USA Today Network New Jersey. Contact him at cjordan@ This article originally appeared on Asbury Park Press: Bruce Springsteen 'Tracks II: The Lost Albums' review
