Survey Finds Investor Appetite for Big Buyout Funds


March 12, 2013

Preqin’s latest survey of over 100 limited partners from their institutional investor database reveals that 23% are targeting large to mega buyout vehicles in 2013, up from 9% in 2010.  Small to mid-market buyout funds continue to be viewed by a significant proportion of investors as presenting the best investment opportunities, with 51% of respondents stating that they will be seeking to commit to this fund type in 201. Nineteen percent of investors see large to mega buyouts as presenting the best investment opportunities, compared to 15% in December 2011.

Key findings

– An increasing proportion of LPs are satisfied with their private equity returns, with the vast majority (85%) of investors interviewed by Preqin stating that their private equity investments have met or exceeded their expectations.

– Asia and Rest of World-based investors were the most active, with 67% of the LPs saying that they made making new commitments, as the graph above illustrates.

– 24% of investors plan to commit more capital to private equity funds in 2013 than in 2012, with a further 10% planning to return to the asset class after not making any new commitments in 2012.

– 53% of LPs expect to make their next private equity commitment in 2013.

– 67% of investors feel that LP and GP interests are aligned, compared to 47% in December 2011.

– 49% of LPs feel that Asia is the most attractive region for investment within emerging markets.

– 41% of LPs are looking to increase the number of GP relationships in their portfolios over the next two years. (Image source: Preqin)

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