An article in The Economist provided two data points highlighting changes to the private equity landscape. As the industry continues to grow with ever-mounting sums of dry powder (the article cites $1.1 trillion of dry powder with “another $950 billion being raised by 3,050 firms”) the article highlights a shift in how firms service these funds. What stood out most was the idea that the number of opportunities actively monitored by investment bankers has now easily surpassed the number of publicly traded opportunities.
- Goldman Sachs has 25 merger bankers assigned to private-equity firms, working on deals alongside colleagues who focus on specific industries. Its analysts monitor 5,500 private-equity holdings—50% more than the number of listings on the American public markets.
- In the past two years the number of limited partners with more than $1bn invested has grown from 304 to 359. Together they account for $1.5trn—half of all private-equity money, according to Preqin.