distressed

Distressed-focused Funds Remain on the Radar; Preqin

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May 30, 2013

Distressed-focused Funds Remain on the Radar; Preqin

Interest in distressed private equity vehicles remains steady, according to Preqin. The interest is drive by slower global growth rates and stuttering economic recovery.

 

This specific niche of the private equity universe is likely to continue to remain strong as economic uncertainty in the global markets continues, says Preqin’s Investor Intelligence service, which tracks the sentiment of 5,035 active investors in private equity, of which 1,448 (29%) have either previously invested in distressed private equity vehicles, or expressed a preference for doing so.

Key findings

  • North America-based LPs make up the greatest proportion of distressed private equity investors, with 69% based in the region.
  • LPs in Europe account for the second highest proportion of investors (19%), with Asia and investors based outside of these core regions accounting for the remaining 12%.
  • The top four investor types with an appetite for distressed private equity each account for a similar proportion of active investors in the fund strategy. Private sector pension funds and foundations each account for 15% of LPs investing in distressed private equity vehicles. Endowments represent 14% of active investors and public pension funds a further 13%.
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