The Median Private Equity Firm Is Now 38 Months Old Before Buying Its First Home
The figure was 24 months in 2019. One emerging manager recently lost a King of Prussia ranch to a dentist who paid cash, waived the inspection, and enclosed a dog photo.
Steep valuations and rising rates have many asking: is the American dream of asset ownership dead for this vintage?
NEW YORK, NY, October 8, 2025 — In a gutting new report for aspiring asset owners, the affordability crisis has claimed a new milestone: the median private equity firm is now 38 months old before it can afford to acquire its first single-family home. The number, up from just 24 months in 2019, has sent a chill through the emerging manager community.
The delay reflects a brutal market where newly formed funds say they are being chronically outbid by older, more established firms and, increasingly, by actual families with all-cash offers.
"We're just getting crushed," said Miles Grady, 36, co-founder of TideRock Peak Capital, a young firm he started with his partner, Sarah Chen. Like many first-time buyers, they're relying on help from family—pooling their capital with a seven-member investor base that includes a significant contribution from Chen’s parents’ retirement account.
Their dream isn't extravagant. "We’re not trying to buy a whole portfolio," said Chen, scrolling through Zillow from their two-desk coworking space. "We just want a fair shot at a decent, cash-flowing, three-bedroom starter home in a good school district."
Last month, they thought they’d found it: a 1,900-square-foot ranch in a desirable King of Prussia cul-de-sac. It last sold for $415,000 in 2019. Today, after a quick "Live, Laugh, Love" kitchen renovation, it was listed at $750,000.
"We put in a strong offer," Grady said. "We even wrote a heartfelt letter to the seller explaining our investment thesis and our commitment to being good stewards of the property."
They were outbid within 48 hours by a dentist and his wife who made an all-cash offer $50,000 over asking. Their offer waived the inspection and included a schmaltzy, handwritten note with a photo of their golden retriever, promising to raise their family there.
“This vintage of emerging managers is facing unprecedented headwinds,” said Derek Pemberton, a placement agent in Stamford, Conn. “They did everything right—they built the track record, they raised the capital—but they waited. Now the math just doesn't work."
The crisis is forcing young funds to make painful compromises. Many are abandoning primary markets and looking at "starter assets" in secondary locations, a phrase that often means a converted motel beside a highway. Others are forced into "co-GP arrangements"—the financial equivalent of moving in with a larger, more successful firm just to get their name on a deal.
Despite the bleak outlook, the dream of ownership remains.
“We’ll get there,” Chen said, saving a new listing to a folder labeled "Next Time." "The dream of acquiring an asset, implementing a modest renovation plan, and raising the rent 40% is still alive. It just requires a few compromises."
