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Bailey McCann, Opalesque New York:

Institutional investors are sticking with their private market allocations despite increased stress from the COVID-19 pandemic. New data from Eaton Partners and Pitchbook suggest that investors have avoided the denominator effect. That's good news for fund managers, however, the data also show that fundraising in the second half of this year and into next year will likely be difficult.

According to Eaton Partners LP Pulse Survey, half (51%) of the limited partners (LPs) surveyed say they are making no changes to their portfolios at this time, while 23% are increasing allocations and 26% are cutting allocations. This sentiment has weakened slightly when compared with the 64% of LPs who said they were planning to stay the course when questioned last month.

Eaton Partners findings also suggest that some of the biggest fears surrounding the private capital markets appear overblown. 55% of respondents were not concerned about the denominator effect, where the lag between public and private market valuations impacts allocation ability. Roughly half (51%) have not seen a noticeable change in capital calls and a majority (56%) say LPs are not facing liquidity issues.

The......................

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