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Bailey McCann, Opalesque New York:

Investors are sticking with their private equity pacing plans despite persistent headwinds for the asset class, according to the latest investor survey from Swiss asset manager Montana Capital Partners.

30% of institutional investors now allocate more than 15% of their portfolio to the asset class, compared to 23% last year survey data shows. Institutional Investors are also increasing their allocations to secondaries. 13% allocate more than 25% of their private equity portfolio to secondaries a 5% increase over last year. In 2022, only 3% of our institutional investor respondents dedicated more than 25% of their private equity allocation to secondaries.

These allocation trends come even as investors are getting more realistic about private equity's return prospects. Approximately three out of four investors believe private equity multiples will remain flat at current levels.

Global buyout-backed exits in 2024 are showing a recovery from muted 2023 levels with an ex- pected increase in volume; however, absolute figures for 2024 will likely stay significantly below pre-Covid levels, the survey says. This continues to impact the cash flow planning of investors who are faced with low levels of distributions in their portfolios and therefore have to be even more selective when allocating to new private equity funds.

Still, investors indicated in their responses that fears of a recession are starting to wane which could be......................

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