Hunter Point Capital says a prolonged slowdown in private equity dealmaking is reshaping the industry’s talent market, with professionals from larger firms increasingly exploring opportunities at more active boutique managers, according to a report by Bloomberg.
Chief executive Avshalom Kalichstein said the decline in carried interest payouts – a key component of compensation across private equity – has prompted a rise in approaches from executives at larger platforms seeking alternative opportunities.
Speaking in an interview, Kalichstein said the slowdown in exits and distributions has created broader pressure on compensation structures across the sector, contributing to what he described as a “realignment” in private markets talent.
Private equity activity has remained subdued since interest rates began climbing in 2022, limiting exits and delaying distributions to investors. Market participants have increasingly focused on distributed-to-paid-in capital (DPI), a measure of how much cash managers return relative to investor commitments.
Industry-wide distributions remained under pressure last year as firms grappled with a large backlog of unsold assets and difficult fundraising conditions. According to Bain & Co, distributions as a percentage of net asset value remained near historic lows.
Hunter Point Capital specialises in GP stakes investments, acquiring minority interests in private fund managers. The firm was co-founded by Kalichstein and Bennett Goodman, a co-founder of Blackstone’s credit business, and raised $3.3bn for its debut GP stakes strategy in 2024.
The firm has continued to expand internationally and recently entered a strategic partnership with Sumitomo Mitsui Trust Bank aimed at providing Japanese investors with access to GP stakes opportunities, while also exploring a dedicated Japan-focused strategy.
