Omnigence Releases Whitepaper Examining Concentration Risk in Mega-Buyout Private Equity Funds
The report highlights structural challenges associated with mega-buyout strategies, including a limited deal universe, rising entry valuations, and increasingly constrained exit environments. Median purchase multiples reached 11.8x EBITDA in 2025, while more than 16,000 private equity-backed companies globally have been held for over four years.
Performance data cited in the paper shows that the fifteen largest buyout funds delivered a median IRR of 10.0% for 2019–2021 vintages, compared with 16.3% for the broader buyout universe.
In contrast, the report points to the middle market as a segment with a larger opportunity set, lower entry valuations, and greater potential for operational value creation. Historical data shows stronger EBITDA growth in middle-market transactions relative to larger deals.
The paper suggests that private equity allocations may benefit from greater diversification across fund sizes, rather than default concentration in mega-buyout funds.
The full report is available at https://omnigenceam.com/insights/concentration-risk-in-mega-buyout-funds-and-the-case-for-middle-market-pe.
About Omnigence Asset Management: Omnigence Asset Management is a Canadian alternative investment platform specializing in farmland, operational private equity, and secondaries. With offices in Toronto and Calgary, the firm is committed to helping investors preserve purchasing power and build durable portfolios in a structurally challenging macro environment. Omnigence has grown to over CA$1 billion in platform assets by focusing on what it describes as the neglected middle, investment opportunities that are too small or too operationally complex for large institutions and traditional alternative managers.
DISCLAIMER: This document is for information only and is not intended to provide the basis of any credit or other evaluation, and does not constitute, nor should it be construed as, an offer to sell or a solicitation to buy securities of Omnigence, Arvore or any other entity, nor shall any part of this document form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. This document may contain forward-looking information and statements (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information is provided for the purpose of providing information about the current expectations and plans of management of Omnigence and Arvore relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. All statements other than statements of historical fact may be forward-looking information. More particularly and without limitation, this document contains forward-looking information relating to Omnigence's and Arvore’s investment objectives and strategies. Forward-looking information is based upon a number of assumptions and involves a number of known and unknown risks and uncertainties, many of which are beyond Omnigence's or Arvore’s control, which would cause actual results or events to differ materially from those that are disclosed in or implied by such forward-looking information. Although management believes that expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information since no assurance can be given that such information will prove to be accurate. Omnigence and Arvore do not undertake any obligation to publicly update or revise any forward-looking statements except as required by applicable securities laws. There is no guarantee of performance, and past or projected performance is not indicative of future results.
Matt Barr
Omnigence Asset Management
+1 587-393-0893
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