In an increasingly competitive private equity environment, sector-focused managers’ intimate knowledge of specific industries often enable them to outperform generalists invested in the same sectors. However, incorporating these “sector specialists” into private equity portfolios has yet to gain widespread acceptance as a strategy, despite the significant number of sector specialists used in venture capital, according to the newly-released report from global institutional investment advisor Cambridge Associates, Declaring a Major: Sector-Focused Private Investment Funds.
