Laxman Pai, Opalesque Asia: Institutional investors and private-markets fund managers are tempering their expectations regarding future returns, revealed a new survey.
52% of the respondents surveyed in early 2019 by eVestment are expecting private equity fund returns to decline in the future, while 36% expect returns to remain the same and only 12% expect returns to increase.
As far as venture capital funds are concerned, 47% expect returns to decline in the future, while 37% expect them to remain the same and 16% expect returns to increase, said the 2019 eVestment Private Markets Due Diligence Survey of institutional investors.
For real estate, 41% of respondents expect those returns to decline, while 45% expect them to remain the same and 14% expect them to increase.
Another interesting point from the report is the apparent mismatch between fund managers' desire to find new investors and investors' desire to reduce or keep stable the number of fund managers with which they work.
In the survey, three out of four fund managers indicated they plan to increase their investor base, while three out of four investors indicated they actually plan to maintain or decrease the number of fund managers with which they work.
"Due diligence remains the foundation for investors looking to build a quality portfolio and generate above market returns," said Graeme Faulds, director of product for private markets at eVestment.
"With the majority of survey respon...................... To view our full article Click here
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