How to increase virtualbox.vdi actual size?

Do successful private equity firms always need to increase its fund size between subsequent funds? Or is it actually some sort of a winner's curse that they have to do this because their size keeps increasing and or their partners always want a bigger share/bonus thus the general trending increase i

• Successful private equity firms like KKR, Blackstone, TPG, etc always increase their fund size on subsequent series. Lets say that a pe fund's first fund closed at 500 million dollars, and they made good investments and had solid returns for the GPs and LPs. For the next fund are they forced to raise a bigger fund (like 1 billion) or can they stay in the same sized fund? Some PE funds have a specific mandate to invest only in a particular sector or region, and sometimes if the fund size is too big the market for that region/sector can't absorb such a large fund or the investments made will not provide as high of a return as investments with lower ticket sizes.

• Answer:

  The why is simple. After a few successes, especially the billion dollar range, the firm wants to be able to top that. The success has put them in a larger bracket and they want to grow even larger. Yes, the larger fund also means more management fees i.e. more money for the partners in the firm. You are exactly right on your point, larger funds don't mean that you can put all the capital to use. In essence, a larger fund means you need raise the volume of the deal flow. Without that, you're just having more money for the same amount of investments as before. So there is either an overflow of un-deployed capital or your investment sizes increase. When that increases, there is of course the risk of sub prime investments, putting too much unnecessarily doesn't increase the likelihood of a huge sale either. It isn't necessary to increase the fund size in most cases, unless you can increase the deal flow...of quality potentials..