LPs bought GP stakes to share in economics they helped create
Wylie Fernyhough · Wylie Fernyhough – Private Equity Stakes (Capital Allocators, EP.208) · Aug 13, 2021 · at 7:32
PitchBook analyst Wylie Fernyhough explains why pension funds and sovereign wealth funds originally sought direct minority equity stakes in alternative asset managers.
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“I think in general it was that strategic element of there were a lot of large We'll say institutions that were looking to have a closer relationship. And so whether it was a large pension looking to get a better allocation and just economic relationship with, let's say, Apollo, for instance, I think that was really the main driver is a lot of these institutions saw the amount of capital they were committing, wanted a closer relationship, and maybe to share in some of the economics that they were helping to create.”
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