Three quarters of LPs see attractive PE opportunities in Europe in the next two to three years with target allocations to private equity and real estate rising, according to the latest Coller Capital Global Private Equity Barometer – Summer 2013.
Investors believe that GPs are improving the operations of their portfolio companies. Half of LPs surveyed are targeting investments in private debt funds. Interestingly, many LPs face hostility to PE from influential colleagues within their own organizations, which will cause the industry to respond and justify its investments and its attractiveness.
Other key findings
- Three quarters of LPs think European restructuring will provide good PE opportunities in the next couple of years, though most (63%) think these will be restricted to parts of Europe – Northern Europe especially.
- 88% of LPs said they don’t plan to accelerate their commitments to large buyout funds in the next 2-3 years.
- Over two thirds of LPs said they regard PE funds raised by publicly-quoted GPs as less attractive than those raised by private managers.
- Also noted in the report was that the appetite for hedge funds remains mixed, with the same proportion of LPs planning to decrease their target allocation to the asset class as increase it. (Image source: Coller Capital)