05 │ Geographical dispersion of activity

Geographic representation of funds sold was consistent with prior years.

Geography of funds sold

  • In times of uncertainty, capital flows to the safest markets. We discovered very little appetite for emerging market exposure in 2023, with the vast majority of buyers seeking Western-domiciled funds in LP-led deals. While North America continues to grow faster than EMEA, we do not see any meaningful differences in demand.

Geography of funds sold, 2023: LP-leds¹,²

  1. Split by 2023 weighted-average transaction value for each type of transaction.
  2. Fund geography represents the geographic focus of the funds acquired.
  • There has been a slight increase in the percentage of North America GP-led transactions YoY as some of the larger transactions that took place in 2023 (e.g., Hellman & Friedman and Leonard Green) were out of the US. GP-led transactions out of Asia have received slightly more attention as investors can perform more detailed underwriting to evaluate the heightened risks in those markets, as opposed to LP-led sales where they do not get the same level of GP cooperation.

Geography of funds sold, 2023: GP-leds¹,²

  1. Split by 2023 weighted-average transaction value for each type of transaction.
  2. Fund geography represents the geographic focus of the funds acquired.

Increase in sell-side activity from European LPs.

Geography of seller

  • The proportion of EMEA-based sellers materially grew in 2023 to 34% vs. 2022 at 25% as an increased number of transactions of $1 billion+ came to market and a number of global sellers ran their transactions out of European offices.
  • North American sellers were down in 2023 as a percentage of the market, with many LPs proving to be price-sensitive in the first half of the year. However, the pipeline of potential sellers continues to grow due to overallocation and net negative cash flow from private markets portfolios.
  • Asian LPs have been active sellers, taking a prudent approach to managing risk and rebalancing their portfolios. Taiwan and Australia have been particularly active markets for sellers.

Geography of seller, 2023: LP-leds¹,²

  1. Split by 2023 weighted average transaction value for each type of transaction.
  2. Seller geography represents the geographic focus of the funds acquired.

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