IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-137-28682-6_6.html
   My bibliography  Save this book chapter

The Sky is Not the Limit

In: Private Equity Unchained

Author

Listed:
  • Thomas Meyer

    (LDS Partners)

Abstract

Private equity does not ‘scale up’ easily. Attracting more capital could make it a victim of its own success, with ‘too much money chasing too few deals’ the new industry mantra. This sector-level constraint has size and strategy implications for GPs and the institutions investing in private equity, as LPs alike. In its broadest definition, the private equity market is about twice as large as the market for public equity,1 but the size of the institutional private equity market is by necessity, far smaller. The opportunities for entrepreneurship-arbitrage are rare and most potential targets are not suitable for institutional investing: companies are too small, their owners unwilling to sell, offer too little growth prospects, do not have the quality of cash flows to bear leverage, and so on.

Suggested Citation

  • Thomas Meyer, 2014. "The Sky is Not the Limit," Palgrave Macmillan Books, in: Private Equity Unchained, chapter 0, pages 54-61, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-28682-6_6
    DOI: 10.1057/9781137286826_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-137-28682-6_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.