As speculation over the impact of the Volcker vagaries on banks’ ownership of private equity assets continues, the Private Equity Council in New York has done a quick tally-up of banks’ direct investment in PE funds.
As you’d imagine, from the perspective of the PE industry itself, the numbers are not pretty:
So, that’s $115bn – or 12 per cent – of the $1,102bn limited partners have invested in buyout-focused private equity funds. Apparently, this figure includes co-investments in addition to ex ante commitments to funds.
Next up, since the Volcker rule may or may not outlaw “sponsorship,” we can look at how much banks have raised for PE funds from other sources, such as institutions and family offices
Answer: $80bn over the past five years, more than half of which came courtesy of Goldman Sachs Principal Investment Area.
All of which means the PE industry must be hoping that the politicians start focusing on the following chart. If you want to hit the banks, why are you punching at the wrong target?
Related links:
Buy-out groups unsure of impact – FT