Blog: Participants in Private Equity "Direct" Investing

Investing in private equity “directs” involves a broad range of participants across private capital markets.

While family offices are among the most active investors in direct transactions, the market also includes independent sponsors, search funds, entrepreneurship-through-acquisition (ETA) sponsors, as well as blind pool private equity funds on certain syndicated deals.

Each participant may have a different investment objective and transaction structure; however, they share a common interest in evaluating and investing in specific acquisition opportunities on a deal-by-deal basis for equity investments in privately held companies, as opposed to investing in a blind pool private equity fund (the latter of which has its utility as well).

Understanding the range of participants involved in private equity "directs" provides valuable insight into the breadth and continued evolution of today's private capital markets.

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