As anyone who has done DIY knows, doing a job yourself has its pitfalls but if it is done right it can save you a packet. In the world of private equity, institutional investors are coming to see the benefits of do-it-yourself investing, and are now sourcing their own deals and in the process cutting out expensive managers at private equity firms.

The trend began in Canada in the 1990s and the Canadians still lead the way. Over the past few years Canadian institutional investors have gobbled up stakes in a diverse range of companies including cinema chain Vue, UK engineering company Tomkins and Norwegian oil and gas company Gassled.