Here is your August edition of Balentic Edge Newsletter.
In this issue:
Introducing "The Edge Brief", where we go beyond the headlines in private markets and summarise the key happenings in the last couple of weeks and what they mean
Latest podcast episode: Cutting through the noise: Building LP trust in a crowded market with Diana Tenkova
Our chart of the week: Dispersion is the Opportunity - if You Can Pick the Winners
Industry events in September
Let’s dive in.
Best,
Kasper,
CEO & Co-founder Balentic
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About Orca
Orca is a digital platform transforming how LPs and GPs connect in private markets. It streamlines fundraising and manager discovery by linking strategies with transparent data, smart filters, and thematic insights - making it easier to find the right GP and the right LP, faster.
Even in the slower summer stretch, private markets haven’t stood still. We have been keeping an eye on what has been moving and here is our take.
If anything, the past couple of weeks have revealed where the deeper shifts are happening - not always headline-grabbing, but undeniably shaping how capital moves, who gets access, and where risk is building.
One theme that keeps resurfacing is the growing presence of the retail investor. Whether it’s Hamilton Lane launching infrastructure funds for individuals or regulators sketching frameworks like the UK’s PISCES system, the message is clear: private markets are opening up - read democratisation!
But with that comes friction.
Fee opacity, alignment gaps, and operational complexity don’t vanish just because new capital shows up. For LPs already in the system, this raises questions about manager bandwidth and whether governance gets sharper, or blurrier, as retail flows in. And as private markets continue to push deeper into retail, the regulator will increase their scrutiny.
Meanwhile, liquidity continues to dominate behind the scenes. Evercore’s latest data shows record activity in secondaries, as institutions seek ways to rebalance without exits. Some are going back to market with large portfolio sales, even retrying shelved deals. It’s a reminder that while fundraising headlines might cool, reallocation is in full swing.
And as for the credit cycle - it’s clearly still running hot, but with pressure building. Defaults are creeping up, underwriting standards are under the microscope, and yet capital continues to pour in. In a market this crowded, it’s not just about where the returns are - it’s about who has the discipline to earn them.
Takeaway:
The signal this summer isn’t about new trends - it’s about quiet recalibration. Access is expanding, liquidity is being engineered, and risk is being repriced. For LPs, the smartest move may not be bold bets, but sharper questions: Who’s really in control of the capital? Where is alignment thinning? And are the tools we’re using still fit for this evolving market?
EQT X has agreed to acquire Adevinta Spain, which operates leading online classifieds platforms including Coches.net, InfoJobs, Milanuncios, Fotocasa, and Habitaclia. Backed by strong market trends and brand recognition, EQT will support the platforms’ continued growth by leveraging its digital expertise, local presence, and experience in the online classifieds sector.
Blackstone has announced a $25 billion investment to build out Pennsylvania’s digital and energy infrastructure, aiming to catalyze an additional $60 billion into the state. This initiative positions Pennsylvania as a strategic hub to power America's AI future.
Orca Highlights: featured GP
Long Arc Capital is a private equity firm focused on growth-stage investments in technology-driven businesses. The firm typically invests in companies at key developmental stages, with established product-market fit and demonstrated commercial traction.
Long Arc Capital concentrates on sectors characterized by digital innovation and structural change, including Technology, Media, Telecommunications, Financial Services, and Business Services. Their investment focus includes companies that build, utilize, or are impacted by emerging technologies.
The team draws on sector expertise and industry relationships to engage actively with portfolio companies.
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Balentic Edge Podcast
In this episode of Balentic Edge, Diana Tenkova, founder of Institutional Quality, joins Kasper Wichmann to unpack what it truly takes to stand out in today’s private markets. From the credibility gap in GP storytelling to the real risks and overlooked advantages of emerging managers, this is a clear look at how capital raising is evolving – and what both GPs and LPs need to do differently
Dispersion is the Opportunity - if You Can Pick the Winners
Source: Hamilton Lane, 2024
This chart from Hamilton Lane highlights a persistent truth in private markets: dispersion is where the opportunity lies - but only if you have the skill to capture it.
It also reignites the age-old debate around how much fund size really matters for performance.
Looking at buyout vintages from 2013 to 2023:
Small-cap buyouts (<$1B) deliver the widest spread in returns - over 1,700 bps. That’s a double-edged sword: the greatest potential for alpha, but also the highest risk if you miss
Middle-market funds ($1B–$5B) offer a compelling middle ground with solid median and top-quartile IRRs and a meaningful return spread (~1,250 bps)
Mega/large-cap buyouts (>$5B) show the tightest dispersion (~500 bps), suggesting more predictable, but less explosive, outcomes. For LPs without strong manager selection capabilities, these may feel like the closest thing to a free lunch
The portfolio takeaway: Every fund size has a raison d’être in good diversified portfolio construction. And. if you can consistently identify out-performers, small and mid-cap funds offer real upside. But for others, mega/large-caps offer scale and predictability and may be the safer path.
What's coming up - key industry events
3 September, 2025 - ALTSSF, San Francisco, USA
4 September, 2025 - Private Equity Insights UK 2025,London, UK
9 September, 2025 - UK Pensions Investment Summit, London, UK
17-19 September, 2025 - UK Forums 2025 European Investment Roundtable, London, UK
18 September, 2025 - ALTSUK, London, UK
24-26 September, 2025 - IPEM PARIS, Paris, France
29-30 September, 2025 - ALTSDC, Washington DC, USA
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Disclaimer: The information provided in this newsletter is for informational purposes only and should not be construed as financial or investment advice.
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