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Private Equity Buyout Fund: Does Size Really Matter?

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Rupert Hargreaves
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Does the size of a private equity buyout fund have any significant impact on returns? Preqin's private equity spotlight monthly newsletter asks this key question.

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Most investors -- around 51% of those surveyed -- believe that small-sized and mid-market buyout funds currently present the best opportunities in the private equity market. On the other hand, only around 10% of investors believe that large-sized and mega buyout funds offer the best opportunities.

However, despite investor beliefs, large/mega cap buyout vehicles are currently dominating the private equity space. Over $186 billion was raised for buyout funds during 2014. 70% of this total was raised by 27 large-sized funds and eight mega funds. At present, just six of the 282 buyout funds in existence...

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha