News

Law

Asset Management

Investment Banking

Wealth

Hedge Funds

People

Newsletters

Events

Lists

Private Equity

A private equity firm’s success in a downturn can be a guide to future returns, study reveals

The success or failure of a future fund during a downturn can make all the difference to a general partner’s overall track record

With a glut of funds already raised, and even more in the pipeline, investors in private equity have been inundated with pitches from firms that manage such funds — known in the industry as general partners (GPs).

But when the economy is shaky, it’s difficult for investors — known as limited partners (LPs) — to determine which new funds will succeed and therefore which they should invest in.

WSJ Logo