The Fundless Revolution: Why Going It Alone is Winning in Private Equity The private equity landscape is undergoing a significant shift, driven by independent sponsors who are thriving without committed funds.
These fundless operators are outperforming the market, delivering median equity IRRs of 23. 8%, compared to 18. 5% for comparable investments made by US buyouts.
Historically, going "fundless" was seen as a sign of failure. However, recent data suggests that this model is not only viable but also more profitable than traditional private equity firms.