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Laxman Pai, Opalesque Asia:

64% of the LPs and GPs polled say investment conditions have improved, and 22% feel they've stabilized, said a study.

Almost three-quarters of institutional investors still find private equity overpriced, according to the global survey by Goldman Sachs Asset Management (GSAM) of 212 investors in alternative assets. Overall, they are still planning to increase their exposure to alternatives, however.

Over 72% of respondents to the GSAM survey, 35% of whom were pension fund executives, also believe both private equity and private real estate are currently too expensive.

As for recessionary fears, 77% of respondents expect a US recession in the next two years, with 23% saying it will come in 2023 and 53% during 2024. Eurozone expectations are more pessimistic: 90% report expecting a recession, 42% in 2023 and 44% in 2024.

The outlook for rates and inflation also differs by region. In the US, 49% expect higher rates while 45% say rates will stay flat. Those views flipped globally, with 51% expecting flat rates by year-end, and 40% anticipating higher rates. In the Eurozone, 63% expect rates to tick higher.

While 58% of LPs report zero allocation to co-investments, 59% plan to increase allocations over the next two to three years. Secondaries rank second (48%) for increasing allocations, followed by private credit (46%), venture capital (41%), infrastructure (40%), and opportunistic/distressed (40%).

Real estate is the top choic......................

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