Why (and how) to sell a piece of a PE firm

Private equity firms both large and small have been exploring sales of GP minority interests to fund supercharged growth. With the help of some of the key market players, we explore how and why.

Our deep dive this month walks you through the ‘why?’ and ‘how?’ of private equity firms selling minority stakes in themselves and includes insight from people who have been at the heart of the industry’s most significant GP minority interest deals.

There has never been a better time to sell a part of your firm. The bankers in this space may even tell you it’s now or never, and perhaps they have a point. There is plenty of capital out there at the moment, and if you’re not thinking about raising some permanent balance sheet capital then your competitors certainly are. This means your competitors making bigger GP commitments, hiring the top talent and launching new strategies.

OK, that’s enough of the hard sell. But these deals are proliferating and we have insight for you on what they look like and how to do them. We hope it is useful and would love to hear any feedback (toby.m@peimedia.com). Watch out for further instalments this week, including a buyer profile, LP view and listings of who’s who in the advisory space.

Email prepared by Toby Mitchenall