Private equity funds are expected to hit their highest annual fundraising total since 2008 this year: $629B, based on data from Traigo.
"Shadow capital" is capturing a much bigger piece of the PE pie—26% of the 2015 fundraising ($161B) is skirting traditional methods of investment, being co-invested (alongside the fund manager) or directly invested (going around the fund manager) in deals, the New York Times reports.
That's a major leap from only 11% in 2008. Data from McNally Capital shows that 77% of families worth $1B prefer direct investment, and half of the 222 investors asked by Preqin say they’re looking at co-investment deals.
The billionaire families who want to ditch their private equity funds for direct investment (or just a new yacht) can sell on a booming secondary market heading for a record $40B this year. [NYT]
