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Laxman Pai, Opalesque Asia: Investors are planning to invest less capital in private equity in the next 12 months amid the global economic shockwaves caused by the COVID-19 pandemic, said Preqin. However, the appetite for Asia-Pacific investments continues to rise, it added.
Among the 334 mandates issued for private equity funds on Preqin Pro in Q1 2020, the majority (56%) are for commitments of less than $50mn, up from 47% of mandates issued in Q1 2019.
While there remains a notable proportion (10%) of investors looking to deploy $600mn or more, the increased share of lower-value mandates reflects both the impact of the pandemic and also the uncertainty surrounding a potential pricing correction.
Buyout remains investors' preferred fund type, Preqin said in its 'Quarterly Update Private Equity and Venture Capital'.
Three-quarters of investors are expected to target buyout fund investments in the next 12 months.
The proportion of investors interested in growth vehicles is down six percentage points in comparison with Q1 2019.
Mandates for private equity opportunities in AsiaPacific have increased as a proportion since Q1 2019.
Although Europe remains the most commonly targeted region for private equity, Preqin data shows that investor appetite has weakened compared to the same time last year, while interest for North America focused funds remains on a par with Q1 2019. ...................... To view our full article Click here
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