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Private Equity Managers vs Private Equity Funds

Is it better to bet on Blackstone or with Blackstone?

Nicolas Rabener
10 min read
8 Sep 2025

SUMMARY

  • Private equity managers have performed worse than private equity funds
  • However, both have underperformed global equities over the last 20 years
  • And they were highly correlated to equities, offering limited diversification benefits

INTRODUCTION

KKR’s co-founder Henry Kravis is a billionaire, as are Blackstone’s Stephen Schwarzman, Apollo’s Leon Black, and Thoma Bravo’s Orlando Bravo. The roster of private equity titans who have amassed vast fortunes is long. By contrast, it is rare to find the names of private equity fund investors appearing on billionaire lists. Put differently: where are the customers’ yachts?

This raises a key question: for an investor looking to allocate to private equity, might it be more rewarding to invest in the management companies rather than in the funds themselves?

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