A GP stake is a minority equity interest in a general partner (GP) entity, the management company of a private markets fund. Unlike investing in a GP's funds, a GP stake investment provides ownership in the management company itself, giving the buyer exposure to the GP's management fees, carried interest, and balance sheet co-investments.
The GP stakes market has grown from virtually nothing in 2010 to over $50 billion in cumulative transaction value. Key buyers include Blue Owl Capital (formerly Dyal Capital Partners), Goldman Sachs Petershill Partners, Blackstone Strategic Partners, and Bonaccord Capital Partners. These buyers typically acquire 10-30% stakes at valuations of 10-25x management fee EBITDA.
For GPs, selling a minority stake provides permanent capital for growth initiatives, succession planning, and balance sheet support for fund co-investments. The transaction also creates a liquidity event for founding partners without requiring a full sale or IPO. Most stake buyers are passive minority investors who do not take board seats or control rights.
From an investor perspective, GP stakes offer exposure to the secular growth of alternative assets with attractive risk-adjusted returns. The revenue model is underpinned by long-duration management fee contracts (typically 10+ years), carried interest upside from fund performance, and the embedded optionality of new fund launches. GP stakes portfolios have historically delivered mid-teens net returns with relatively low volatility.
Key diligence considerations for GP stakes include: management fee stability and growth trajectory, fund performance track record (especially consistency across vintages), team depth and succession planning, LP concentration risk, fundraising pipeline, and regulatory compliance. Our GP Stakes platform provides comprehensive data on all of these dimensions across 6,000+ fund managers globally.
The GP stakes market is evolving rapidly. Continuation vehicles, rated note structures, and public market listings (like Petershill Partners on the LSE) are expanding the range of investment structures available. As the alternative asset management industry grows toward $30 trillion in AUM by 2030, GP stakes will continue to be a critical tool for capitalizing on this growth.