Private Markets’ Burgeoning Capital Concentration Challenge

PEI’s Private Markets 2030 series featured insights from Andrea Auerbach, Global Head of Private Investments at Cambridge Associates. Andrea explores the rise of “mega-managers,” a major trend in the private equity industry, and details how several leading private equity firms are rapidly expanding by acquiring a full spectrum of investment strategies.

Andrea highlights that a significant portion of industry capital could eventually be managed by a small group of these mega-managers, creating a concentration challenge similar to what’s seen in public markets. The article discusses how these firms are becoming “one-stop-shops” for investors, appealing to both large institutional investors and individual or retail investors who can now access private markets with relatively small investments.

Andrea emphasizes that this shift could fundamentally change the landscape for both types of investors. And while the consolidation trend is accelerating, its full impact and timeline remain uncertain, and the consequences will vary for investors, managers, and industry observers.

To read the full piece, click here.