MUMBAI : The covid-19-led market disruption may clean up the private equity (PE) ecosystem, with some investors, especially smaller funds, shutting shop and bigger fund managers cornering a bigger share of the capital. “This dislocation may lead to a clean-up of the sector.
The absolute number of funds on the smaller side of the market may shrink, while the top-tier funds should be fine," said Atul Kapur, co-founder and chief investment officer of Everstone Group, which manages more than $5 billion in assets across PE, real estate and infrastructure.
Funds managing assets of $50-400 million and investing in early stage e-commerce or growth strategies could be particularly vulnerable in this market, as these segments tend to have less