We of course love this research...as a sector fund Focused on FinTech!
As the private equity environment gets more competitive, some firms are finding an advantage by specializing in specific sectors. And according to a new study from Cambridge Associates, their limited partners are benefitting from their specialization. Sector-focused funds have returned an aggregate 2.2x multiple on invested capital and a 23.2 percent gross internal rate of return between 2001 and 2010, Cambridge said. That compares to the 1.9x multiple and 17.5 percent gross IRR returned by generalist funds during that time period.