Average private equity allocations by North American endowments, the fourth largest institutional private equity investor group, are on the rise, according to the latest LP survey from Preqin. Investment has increased from 8.4% of assets under management in 2007 to 13.2% in 2012. Some 94% of those surveyed intend to increase or maintain their exposure to private equity in the longer term. Over half (58%) of North America-based endowments expect to make their next private equity commitment before the end of 2012 and a further 10% in 2013.
The most favored category is small to mid-market buyout funds. Next most popular is distressed private equity with 26% of endowments looking to target them in the coming year. A similar proportion of endowments plan to make commitments to fund of funds vehicles during the next 12 months. Other fund types named by endowments as presenting the best opportunities include energy and natural resources funds. (Image source: Preqin)