The DPI chart is the honest version of the PE story that most managers would prefer you didn’t look at too closely. 2018 vintages at sub-100% DPI after eight years is not a vintage problem, it’s a structural one. The exit environment didn’t cooperate and the IRR figures that looked compelling in the deck haven’t translated into cash in the account.
The tech concentration point is underappreciated. Investors allocated to PE seeking diversification and ended up with a leveraged, illiquid version of what they already owned in their public portfolio. That realisation is part of what’s slowing fundraising — not just the distribution drought.
The democratisation push is the industry’s answer to institutional LP fatigue. Whether retail capital is better suited to absorb the illiquidity and opacity is a question worth asking before the answer becomes obvious.
Couldn't agree with your points more! DPI should be the preferred measure and for a long while I remember it being widely promoted... then a couple of years ago it seemed to become increasingly less used!
On the tech point - I fear this is becoming a wider issue across portfolios. There is simply little place for people to hide in the financial markets if you just want to diversify a little bit - in theory PE or private credit should help but sadly these areas seem to have also become infected.
I really fear that retail investors are going to get badly stung here!
The DPI chart is the honest version of the PE story that most managers would prefer you didn’t look at too closely. 2018 vintages at sub-100% DPI after eight years is not a vintage problem, it’s a structural one. The exit environment didn’t cooperate and the IRR figures that looked compelling in the deck haven’t translated into cash in the account.
The tech concentration point is underappreciated. Investors allocated to PE seeking diversification and ended up with a leveraged, illiquid version of what they already owned in their public portfolio. That realisation is part of what’s slowing fundraising — not just the distribution drought.
The democratisation push is the industry’s answer to institutional LP fatigue. Whether retail capital is better suited to absorb the illiquidity and opacity is a question worth asking before the answer becomes obvious.
Couldn't agree with your points more! DPI should be the preferred measure and for a long while I remember it being widely promoted... then a couple of years ago it seemed to become increasingly less used!
On the tech point - I fear this is becoming a wider issue across portfolios. There is simply little place for people to hide in the financial markets if you just want to diversify a little bit - in theory PE or private credit should help but sadly these areas seem to have also become infected.
I really fear that retail investors are going to get badly stung here!