The Paradox of Choice: Large, Diverse Universe of Funds Presents Investors with a Daunting Decision-Making Process
The private equity fund-raising market is characterized by limited capital availability and an abundance of investment vehicles in the market, a classic case of a supply and demand imbalance. Investors must sort through the offerings, narrow down their options and then select the investment that they believe best matches their objective and strategy. How do LPs go about this winnowing process, and what determines the winners and losers?