Preqin’s latest industry survey reveals that PE fund managers wish to deploy more capital than last year and they have the cash to do so but they are worried (32%) about valuations, according to the 2015 Global Private Equity & Venture Capital Report. The bigger concern is fundraising with 37% reporting it to be the big challenge of the year. About 25% of those surveyed had funds in the market.
Despite that, Capstone, a fund placement advisor interviewed in the Report, said that the demand is expected to be strong for certain PE funds. It even has an acronym for it HDO, High Demand Offerings. It is defined as raising capital from a small and select group of LPs, going to hard cap and close in a very short period of time. Apparently, even HDOs have their own set of challenges.