The latest industry survey by Coller Capital, a secondaries investor, says that LPs see major challenges for the industry in the next few years, nevertheless they think 2012 will be a good vintage year and they expect strong medium-term returns from their private equity portfolios. The report is available for download on Coller’s website. (Graphics Source: Coller Capital)
– Europe’s sovereign debt crisis will deter one in five PE investors
– Half of LPs have ‘zombie’ funds in their portfolios – and see no solutions for them in most cases
– Investors regard the re-financing of existing buyout debt as a major challenge for the industry
– 93% of LPs will refuse re-ups in the next 18 months – and reductions in commitments will be common
– Investors expect the best investment opportunities for GPs in the next couple of years to come from corporate disposals and sales by families/entrepreneurs.