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Laxman Pai, Opalesque Asia: Investors are doubling down on private equity, despite the macro headwinds as 83 percent are considering making new allocations to the asset class in the next 12 months, said a survey.
According to the survey by Moonfare, the global digital private equity platform, an overwhelming majority (77 percent) expect their private equity investments will meet expectations, and 8 percent expect their investments to exceed them.
Buyout funds are seen as the best bets, while defensive strategies gain traction. 56 percent of respondents expect buyouts to generate the best returns in the short term.
"Traditional buyout funds are seen as the best fit for current economic circumstances. Infrastructure, secondaries, and private credit have also come into focus for their traditional resilience to recession. Conversely, investors are less confident in tech-heavy venture capital and growth strategies," it said.
Many investors have dwindling confidence in the economic outlook: 73 percent of survey respondents say they feel "somewhat bad" about the current state of the economy.
The door to private equity is open, but barriers still exist, the survey pointed out. When asked about what prevents them from making higher allocations to private equity, 48 percent ranked illiquidity as one of the biggest hurdles, followed by fees (41 percent).
The Moonfare survey found that when making an investment decision, private investors ...................... To view our full article Click here
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