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.
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Andrea Auerbach - Andrea Auerbach is the Global Head of Private Investments and a Partner at Cambridge Associates.
About Cambridge Associates
Cambridge Associates is a global investment firm with 50+ years of institutional investing experience. The firm aims to help pension plans, endowments & foundations, healthcare systems, and private clients implement and manage custom investment portfolios that generate outperformance and maximize their impact on the world. Cambridge Associates delivers a range of services, including outsourced CIO, non-discretionary portfolio management, staff extension and alternative asset class mandates. Contact us today.