Based on our internal pipeline review of GPs and our discussions with a global base of LPs and their consultants, it is our expectation that there will be a large number of existing GPs coming back to market in 2012.
This dynamic will also be coupled with an array of new managers seeking capital.
Similarly, given that the average duration of fundraising is also extended, we see a crowded market as other GPs that have experienced more sluggish fundraising are still fighting their way through the market and for mind-share amongst investors.
Recent research suggests that there are more than 1,700 funds, across asset classes, in the market on a global basis seeking more than $700 billion of capital. With LP re-up rates down, smaller commitment sizes, and continued consolidation of manager relationships, not all of these groups will receive funding and we will continue to see a stark contrast of “haves” and “have-nots” and a bias towards managers with proven robust track records.