Fundraising Pressures Prompt Middle-Market Private Equity Consolidation (S&P Capital)

Bigger is better in private equity’s middle market as fundraising pressures feed a consolidation trend. Private equity fund managers acquired or invested in other private equity fund managers in 22 separate deals between Jan. 1 and April 14, according to S&P Global Market Intelligence data. That compares to 69 such deals in full year 2025. Consolidation is not the only option for middle-market private equity firms adapting to a changing fundraising environment, according to Ranan Well, a partner in Goodwin's Private Equity group and Asset Management Transactions practice. Firms are also seeking investments from GP stakes funds. GP stakes funds buy minority interests in private equity firms. In return for a share of firm revenues, they provide capital and industry connections that support deal sourcing. “Some of the benefits that you could get from a full merger you can now get from a sizable minority investment. You don’t have to give up control, but you do get liquidity, and you do now have more stable footing,” Well said.

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