In this white paper, we explore the dynamics driving the current state of private markets.
While market fluctuations are often cyclical, we believe there is a significant and under-discussed secular trend impacting private equity: the twin scarcities of capital and alpha.
We describe how the private equity market is experiencing unprecedented scarcity in both capital and alpha, driven by changing market structures and incentives. This has led to a bifurcated marketplace, creating challenges and opportunities for different types of managers.
We delve into the implications of these twin scarcities, examining how they are reshaping the strategies and operations of private equity firms. We also provide a playbook for small and mid-market GPs to navigate this new landscape.
You can find the full piece here (Password: Arctos1!).
As always, we welcome your feedback and questions.