GP stakes

Institutional investors are voicing an interest in stepping outside the familiar fund structure to invest directly in GPs. The move could change the GP stakes market and create a new class of shareholders.

In an active market, GP stakes investors are differentiating themselves by homing in on private markets firms of particular sizes.

Rising consolidation in the PE industry means both more competition for attractive targets and more opportunities for exits.

A diversifying LP base is emerging as the GP stakes universe matures.

Cash income, J-curve mitigation and diversification make GP stakes an attractive option for private wealth and retail investors. But a lack of liquidity could be a problem.

The benefits and challenges of the past 12 months makes for a mixed picture for GP stakes as 2026 takes shape.

As mid-market GPs look to scale, GP stakes investors can help by sharing their global expertise and by teeing up new liquidity solutions, explains Brad Pilcher, partner at Bonaccord Capital Partners.

A GP stakes transaction is a good opportunity to address the foundations on which the firm’s future will be built, but it requires a careful approach, Fried Frank Harris Shriver & Jacobson’s Saif Shah Mohammed and Brett Fieldston note.

Experienced and well-resourced GP stake investors can bring large-cap tools and skills to smaller GPs, positioning them for long-term success, say Investcorp’s Anthony Maniscalco, Ravi Thakur and Amir Rezvani.