Mega Growth Equity/Buyout Continues to Attract Institutional Investors…

Not all of the news coming out of the mega buyout/growth equity world is gloomy.

As reported in The Wall Street Journal, growth-equity investment firm TA Associates announced the close of their most recent fund. From the article: “The Boston-based firm closed the latest vehicle, TA XV, at its upper limit of $16.5 billion in limited partner commitments. The sum exceeds both the initial fundraising goal and the $12.5 billion predecessor fund, which closed in 2021.”

Exceeding both their initial fundraising goal AND their previous fund. That is a rare accomplishment in this market.

A lot has been written in the news about institutional cutbacks in allocations to both private equity and venture capital. As I have written about before, I believe that is a temporary situation.

The truth is that many growth-stage companies continue to make the decision to stay private longer. Many growth-stage companies never even touch the public stock markets.

Large institutions need the portfolio performance boost that only growth-stage companies can deliver. Those companies continue to be held in both private equity and venture capital portfolios. In some ways, large institutions have no choice but to remain heavily allocated to private markets.

No question that there has been a recent allocation pause/cutback. But don’t expect that to last…

mpatterson@E78Partners.com
www.E78Partners.com

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