The GP stakes fund industry is gaining traction among limited partners (LPs) seeking direct investments in private equity firms. McKinsey & Company’s recent Global Private Markets Report 2025 reveals that 43% of institutional LPs currently invest in GP stakes funds, with over half considering direct acquisitions. Sovereign wealth funds show the highest interest, with 70% exploring this option, followed by 56% of pension systems and more than half of insurance companies. The appeal lies in GP stakes funds’ proven track record and attractive risk-return profile, prompting LPs to reassess traditional relationships with general partners (GPs).