- Alpinvest - acquired by The Carlyle Group in 2011
- Parish Capital - acquired by StepStone in 2011
- Gartmore and Hermes merged their funds-of-funds businesses in 2010
- HRJ Capital - acquired by Capital Dynamics in 2009
I believe that the consolidation will continue among these large, generalist private equity fund-of-funds businesses. This is due to a number of factors, including regulatory changes forcing financial institutions to reduce their private equity exposure, and a reduction in commitments to the private equity industry overall.
However, I believe specialist funds-of-funds will continue to see robust demand. Specialist funds-of-funds include those focused on technology, venture capital, emerging markets, small-to-mid-market buyout and small funds. In my opinion, these specialist funds-of-funds will continue to thrive providing these focused programs as these programs are difficult to create in-house (due to the expertise and access required) and are also difficult to offer effectively as part of large PE fund-of-funds (as they are often too small a component of the overall business).
Links to articles:
Reuters article on the SwissRe sale to BlackRock:
Bloomberg article on Alpinvest deal:
Press release regarding Parish deal:
FT article on Gartmore-Hermes merger:
Press release on HRJ deal: