Private Equity Fund of Funds
Funds investing in portfolios of private equity funds.
Market snapshot
These figures describe Private Equity & Venture Capital (3.6.5), the segment that Private Equity Fund of Funds sits within — not Private Equity Fund of Funds on its own.
- Market size
- ~$46B
- Growth
- ~8.8%CAGR (2017–22, nominal)
- Companies
- ~11,600
U.S. Census Bureau 2022 CBP/Economic Census, NAICS 523910 (Miscellaneous Intermediation) — captures management-fee revenue; AUM (multi-trillion) is far larger.
Business model & economics
Revenue model
Management fees on committed capital plus carried interest
Key economics
- Recurring revenue
- High
- EBITDA margin
- Strong
- Capex intensity
- Low
long-duration fund management fees
scalable fee-and-carry economics
Characteristics
- Management fees plus carry against trillions in AUM.
- Largest managers scaled into diversified platforms.
- Push into private wealth and insurance permanent capital.
Geographic concentration
Private equity and venture-capital firms concentrate in the major financial and deal-making centers — California, Texas, Florida, New York, and Chicago hold the bulk of U.S. firms by count, a truer picture than a location-quotient read distorted by fund-domicile registration in states like Delaware and Wyoming.
U.S. Census Bureau — 2022 County Business Patterns (establishments by state), NAICS 523910. Leading states by number of establishments.
M&A deal context
Who’s acquiring
- Alternative-asset managers
- GP-stakes investors
- Manager-M&A consolidators
What’s driving deals
- GP-stakes investment and manager M&A.
- Diversification across alternative strategies.
- Expansion into private wealth and insurance capital.
Find Private Equity Fund of Funds acquisition targets
Search Acquisera’s index for companies classified under Private Equity Fund of Funds (3.6.5.3) and build a targeted deal pipeline.
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