Tue, Oct 19, 2021
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

86% of private equity investors plan to maintain or increase their investments

Monday, September 17, 2018
Opalesque Industry Update - According to Preqin's latest survey of institutional investors, over half (57%) allocate to private equity - the secondhighest proportion of any alternative asset class after real estate.

With the vast majority (90%) of these investors finding that private equity performance has met or exceeded expectations over the past 12 months, it's no surprise that 86% plan to maintain or increase their investments in the asset class in the coming year, said a press release from Prequin.

Investors continue to identify small to mid-market buyout funds as presenting the best opportunities, with investors also seeking out venture capital opportunities in the upcoming year.

Over half (55%) of investors cite North America as the region with the most favourable investment opportunities in the next 12 months, and a notable 23% plan to target Asia.

Christopher Elvin, Head of Private Equity said: "Competition for assets and asset pricing remain the twin concerns of private equity investors, and we can see that they are having a downward pressure on returns expectations."

He added: "The average targeted returns for investors from their private equity portfolios has fallen three percentage points in three years, an indicator of the yield compression the industry faces. However, appetite for the industry remains strong as investors look to target the diversification and absolute return advantages that private equity offers."

Key Private Equity Investor Facts:

• Over half (57%) of institutional investors allocate to private equity, citing high absolute returns, high riskadjusted returns and diversification as main reasons for investing in the asset class.

• Investors are seeking an average of 11.6% from their private equity investments, a decrease from June 2015 when investors were seeking 14.1%.

• The majority (90%) of investors found that private equity performance over the past 12 months met or exceeded expectations, including almost a fifth (19%) which found that performance had exceeded expectations.

• Looking ahead, 29% of investors plan to invest more capital in the next 12 months than they did in the past 12 months, while 14% plan to invest less.

• Eighty-six percent of investors plan to maintain or increase their investments in private equity in the coming year, and 77% of those investors intend to commit to a private equity fund in the second half of this year.

• The largest proportion of respondents (44%) identify small to mid-market buyout funds as presenting the best opportunities in the next 12 months, while a quarter are targeting venture capital funds.

• Over half (55%) of investors cite North America as presenting the most favourable investment opportunities, followed by Europe (35%). A notable 23% plan to target Asia and 16% are looking to emerging markets.

Article source - Opalesque is not responsible for the content of external internet sites

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. SPACs: Is the SPAC boom fizzling out?, SPAC merger mania: Companies that went public via blank-check merger in Q3, SPAC marketing heavily curtailed in House Democrats' draft bill[more]

    Is the SPAC boom fizzling out? From Crunch Base: SPACs may be fizzling out. Since February 2021, when the SPAC (special-purpose acquisition company) craze was booming, a market selloff has wiped out about $75 billion of the value of companies that went public using SPACs, according to

  2. New Launches: H.I.G. closes first European buyout fund at $2.4bn, Cheyne Capital raises another $1.18bn credit fund to invest in struggling European companies, Falfurrias Capital Partners raises $850m in oversubscribed fund, Alan Howard-backed 10T raises $750m for debut crypto fund, Crayhill Capital strikes $820m hard cap close for second credit-focused fundraise, Edmond de Rothschild's Eres IV eyes second close in H1 2022, Revaia closes Europe's largest female-founded VC fund, Octopus unveils UK Future Generations sustainable fund, TrueBridge Capital Partners closes seed & micro-VC fund I, at $170m, Federated Hermes launches low-carbon bond fund with Swedish partner[more]

    H.I.G. closes first European buyout fund at $2.4bn From PIonline.com: H.I.G. Capital closed its first European middle-market buyout fund, the H.I.G. Europe Middle Market LBO Fund, at €2 billion ($2.4 billion), a news release shows. The fund targets middle-market companies prim

  3. U.S.: Peter Thiel gamed Silicon Valley, Donald Trump, and democracy to make billions, tax-free[more]

    From Bloomberg: The meeting started with a thank-you. President-elect Donald Trump was planted at a long table on the 25th floor of his Manhattan tower. Trump sat dead center, per custom, and, also per custom, looked deeply satisfied with himself. He was joined by his usual coterie of lackeys

  4. Opalesque Exclusive: Female led team of veteran ESG investors to launch debut fund[more]

    Bailey McCann, Opalesque New York for New Managers: A female-led team of veteran ESG investors is preparing to launch a new fund early next year built on their ESG investing and advisory experience. Sustainable

  5. Institutional Investors: Vanderbilt University endowment records 57.1% return for fiscal year, MIT endowment logs 55.5% return for latest fiscal year, AP1 re-tenders $720m emerging markets small-cap mandate, Harvard, world's wealthiest university, sees endowment soar to $53.2bn, San Francisco shifts passive equity mandate to active BlackRock ESG strategy[more]

    Vanderbilt University endowment records 57.1% return for fiscal year From PIonline.com: Vanderbilt University's endowment returned a net 57.1% in the fiscal year ended June 30, according to a financial report on the Nashville, Tenn.-based university. The report did not provide benchma